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African Energy Matrix To Be 60% Fossil Fuel Driven By 2040, Experts Urge Investment In Downstream Infrastructure

African energy matrix to be 60% fossil fuel driven by 2040, requiring investments in downstream infrastructure, regional trade, and market regulations.

By 2040, up to 60% of the African energy matrix will be fossil fuel driven, according to Anibor Kragha, Executive Secretary of the African Refiners and Distributors Association. Speaking at a FAMAR-sponsored panel during the Angola Oil & Gas (AOG) conference, Kragha emphasised the need for substantial investments in downstream infrastructure to meet the growing demand for fossil fuels in Africa.

Also read: NECA Applauds Federal Government And Dangote Refineries For Energy Sufficiency Agreement

Efforts to reduce petroleum imports are underway, but Kragha identified three key areas for improvement: regional regulations, market-based pricing, and infrastructure development. He stressed that without harmonised regulations, markets would remain fragmented, hindering trade. Additionally, better infrastructure is needed to reduce supply chain risks, suggesting that Africa move from road transport to rail and port optimisation.

Orlando Chongo, Head of Coverage for Indian Ocean and Lusophone Africa at the Trade Development Bank, highlighted the urgent need for accessible financing to support these infrastructure developments. He noted that while there are plans to enhance infrastructure capacity, downstream players require easier access to capital.

In Angola, the regulatory framework has been updated to facilitate investments in the downstream sector. Luis Fernandes, Director General of Angola’s downstream regulatory body (IRDP), stated that new rules are in place to ensure greenhouse gas emissions reductions, aligning with global climate change policies. These legal frameworks aim to create a favourable environment for companies to thrive in the downstream market.

Angola’s national oil company, Sonangol, has prioritised refining, distribution, and port infrastructure projects to boost regional trade. The Cabinda refinery (60,000 BPD), Soyo refinery (100,000 BPD), and Lobito refinery (200,000 BPD) are all in progress, alongside storage expansions and the Barra do Dande Ocean Terminal. These projects are set to enhance Angola’s energy capacity, enabling both local supply and regional exports.

Sara Silva, Legal Compliance Manager at FAMAR, pointed out that maritime transport will play a key role in connecting African markets to the global economy. She explained that shipping remains the most cost-effective transportation method, reducing cargo costs and increasing Africa’s international trade potential.

In the retail sector, companies like Pumangol are expanding inland fuel storage capacity. CCO Óscar Sequesseque shared that these efforts aim to provide Angola with affordable, locally-sourced fuel products, further strengthening the country’s energy security.

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