Africa Needs $125bn in Refining Investment Through 2050, OPEC Says

Africa will need at least 125 billion US dollars in investment in oil refining through 2050 to develop new capacity, complete existing projects and maintain refineries, according to the Organisation of the Petroleum Exporting Countries (OPEC).

The investment requirement comes as the continent’s oil demand is projected to nearly double by 2050, outpacing expected refining capacity and highlighting the scale of investment needed to expand domestic processing, Abderrezak Benyoucef, OPEC’s head of energy studies, said at African Energy Week 2026 in Cape Town.

Africa’s oil demand is forecast to rise from 4.9 million barrels per day to 9.2 million barrels per day by 2050, while distillation capacity is projected to increase by 3.2 million barrels per day to about 7.9 million barrels per day, according to OPEC’s projections.

Benyoucef said African refineries currently operate at about 55 percent of capacity, processing less than three million barrels per day. OPEC expects utilisation to rise to around 80 percent by 2050, approaching the global average.

Even with the projected expansion, refining capacity would remain below the continent’s expected oil demand, leaving a gap between consumption requirements and the volume of crude that can be processed domestically.

“Talking about capacity, we have also to talk about how much we get from these refineries,” Benyoucef said during a fireside chat with Eithne Treanor, founder and chief executive of ETreanor Media.

The projections were drawn from OPEC’s 2026 World Oil Outlook, which includes a dedicated assessment of Africa’s medium- and long-term energy prospects.

OPEC Secretary-General Haitham Al Ghais said Africa’s population was expected to grow by about 917 million people by 2050, while gross domestic product was projected to expand at an average annual rate of 4.4 percent, faster than any other region.

The continent holds an estimated 120 billion barrels of proven crude oil reserves and 18 trillion cubic metres of proven natural gas reserves, according to OPEC.

Al Ghais called for improved access to financing for energy projects tailored to individual countries’ circumstances, arguing that African economies should retain the opportunity to pursue development and expand access to energy.

“Africa cannot and should not be expected to forgo development opportunities, energy security and poverty eradication in response to a problem which it had very little to do with the creation of,” he said.

Africa’s total liquids supply currently stands at about 7.6 million barrels per day, representing roughly seven percent of global supply, Benyoucef said. OPEC expects liquids production from African countries outside the Declaration of Cooperation to increase from 2.3 million barrels per day in 2025 to three million barrels per day by 2050.

Despite the projected growth in supply, OPEC expects energy access to remain a significant challenge. Under its reference scenario, about 700 million people in Africa would still lack access to clean cooking in 2050. Alternative scenarios based on stronger economic growth and greater investment in technology project a lower number.

Al Ghais invited delegates to attend the 10th OPEC International Seminar, scheduled for July 7–8, 2027, at Vienna’s Hofburg Palace, where African energy issues are expected to feature prominently in discussions.

Source: FSX Business News