By 2040, up to 60% of the African energy matrix will be fossil fuel driven, Anibor Kragha, Executive Secretary of the African Refiners and Distributors Association remarked at a FAMAR-sponsored panel discussion during the Angola Oil & Gas (AOG) conference on Thursday. This, he noted, highlights a fundamental need to invest more heavily in downstream infrastructure.
While efforts are being made to reduce petroleum imports, Kragha offered three recommendations to expand downstream infrastructure, strengthen regional trade and bolster energy security.
“The first is coordinated, harmonized, regional regulations – it is critical to do this. If you don’t have harmonized regulations, you won’t have harmonized markets. Secondly, you need market-based pricing and products. Lastly, you must focus on infrastructure to minimize supply chain risks. We use trucks but we should be using rails, optimizing ports and such,” he said.
Orlando Chongo, Head, Coverage in Indian Ocean and Lusophone Africa at the Trade Development Bank, emphasized the need to improve access to financing for downstream players. While plans are in place to strengthen infrastructure capacity, capital needs to be made more available.
