The African Energy Chamber has called for urgent expansion of Africa’s downstream oil and gas sector, warning that global supply disruptions linked to the Gulf war have exposed structural weaknesses in the continent’s energy systems.
Speaking at ARDA Week 2026 in Cape Town, NJ Ayuk said strengthening refining capacity is critical to addressing energy poverty, supporting industrial growth and securing long-term energy independence.
Africa currently faces a significant energy access gap, with more than 600 million people lacking electricity and about 900 million without access to clean cooking solutions. At the same time, oil demand across the continent is projected to reach 4.5 million barrels per day by 2050, increasing pressure on existing infrastructure.
Ayuk said the need to expand refining and distribution systems is no longer a policy debate but an economic necessity, urging African countries to take greater ownership of their energy future.
He noted a shift in the sector over the past two decades, with African-led investments increasingly driving growth. Indigenous firms such as Dangote Group and Sahara Group were cited as examples of companies now leading refinery development and energy access initiatives.
Despite this progress, Ayuk stressed that energy poverty remains widespread and requires practical, large-scale solutions. Expanding domestic refining capacity, he said, would reduce dependence on imported fuels, stabilise supply chains and help retain more economic value within African economies.
He also highlighted the need for supportive policy frameworks, including stable regulations, competitive fiscal regimes and reduced barriers to investment. According to him, excessive taxation and complex regulatory processes continue to limit private sector participation.
Regional cooperation was also identified as a key factor in unlocking the sector’s potential. Ayuk pointed to persistent trade barriers, including tariffs and customs bottlenecks, as obstacles to intra-African energy trade and infrastructure optimisation.
Industry estimates suggest that more than $100 billion in investment will be required to meet Africa’s future refining needs, presenting opportunities for both domestic and international financiers.
Ayuk maintained that Africa must continue to develop its energy resources across the value chain, arguing that expanding oil production and refining capacity remains essential to meeting the continent’s development needs.
The call comes amid renewed focus on energy security, as global market volatility continues to reshape supply dynamics and highlight the importance of localised energy systems.
