Africa’s downstream oil and gas sector is undergoing significant transformation as countries invest in new refining capacity, modernise existing facilities and expand fuel production infrastructure. These developments have the potential to reshape regional fuel markets, strengthen energy security and reduce reliance on imported refined petroleum products.
Nigeria leads refinery expansion
Nigeria is at the forefront of Africa’s refining ambitions following the commissioning of the Dangote Refinery, the continent’s largest refining facility. Designed to process hundreds of thousands of barrels of crude oil per day, the refinery is expected to significantly reduce Nigeria’s dependence on imported fuels while creating new export opportunities across West Africa.
The ongoing rehabilitation of the Port Harcourt Refinery is also expected to increase domestic refining capacity and improve fuel supply. Together, these projects position Nigeria to become a major supplier of refined petroleum products within the region.
Angola expands downstream capacity
Angola continues to strengthen its downstream sector through refinery upgrades and new development projects aimed at increasing domestic processing capacity. Expanding local refining capabilities is expected to reduce fuel imports, improve supply reliability and create greater value from the country’s crude oil resources.
Although progress has been gradual, continued investment is helping Angola build a more resilient refining industry while supporting long-term growth in its energy sector.
South Africa rebuilds refining capability
South Africa has experienced a decline in domestic refining capacity following the closure or suspension of several major refineries. As a result, the country has become increasingly reliant on imported petroleum products, exposing the market to supply disruptions and price volatility.
The experience highlights the importance of maintaining domestic refining infrastructure to ensure stable fuel supplies and support industrial development.
East Africa focuses on infrastructure development
In East Africa, investment has largely focused on expanding oil transportation infrastructure, including pipeline developments that support crude oil exports. While these projects improve export capacity, additional investment in refining infrastructure will be important to strengthen regional fuel security and reduce dependence on imported refined products.
Growing opportunities across Africa
Several North African countries continue to invest in refinery modernisation and capacity expansion, helping maintain stable downstream operations while supporting domestic and export markets.
Across the continent, investment in refining infrastructure is expected to deliver a range of economic benefits, including reduced fuel import costs, improved supply security, increased industrial development and new employment opportunities.
As refining capacity expands, Africa has the opportunity to strengthen its position in the global downstream oil and gas industry. Continued investment in modern refineries, supporting infrastructure and regional fuel distribution networks could enable more countries to process crude oil locally, improve energy resilience and create long-term value from their natural resources.
While progress varies across different regions, the current wave of refinery projects signals a growing commitment to developing a stronger and more competitive downstream energy sector across Africa.
