Africa’s energy sector is facing a defining moment as global supply disruptions linked to the Gulf war expose longstanding vulnerabilities in the continent’s downstream capacity, prompting renewed calls for investment in refining and distribution infrastructure.
Speaking at ARDA Week 2026 in Cape Town, NJ Ayuk, Executive Chairman of the African Energy Chamber, urged African governments and industry leaders to prioritise downstream expansion as a matter of urgency, framing it as central to energy security, industrial growth and economic sovereignty.
With more than 600 million Africans lacking access to electricity and close to 900 million without clean cooking solutions, the scale of the challenge remains stark. At the same time, oil demand across the continent is projected to reach 4.5 million barrels per day by 2050, intensifying pressure on existing infrastructure and supply systems.
“A big question for Africa is whether we will embrace innovation, growth and prosperity or slide back to a time where we will deny facts and demand. We need to produce more energy. That is why we keep saying ‘drill baby drill.’ We should never hold back on that,” Ayuk said.
His remarks come against a backdrop of shifting global energy dynamics, where supply chain disruptions and geopolitical tensions are forcing countries to reassess their energy resilience. For Africa, this has translated into a renewed focus on reducing dependence on imported refined products and retaining more value within domestic markets.
Ayuk pointed to a notable shift in the sector’s structure, highlighting the growing role of African companies in driving investment and infrastructure development. Where multinational firms once dominated, local players are now increasingly leading large scale projects and shaping the continent’s energy future.
“Over 25 years ago, it was the majority of foreign companies doing the heavy lifting. Who would have thought it would be facilities such as Dangote transforming the continent and African entrepreneurs such as Sahara Group not only owning refineries but championing energy access,” he said.
At the centre of the debate is refining capacity. Despite being rich in hydrocarbons, Africa continues to export crude oil while importing refined fuels, a dynamic that exposes economies to price volatility and supply disruptions. Expanding domestic refining, Ayuk argued, would not only stabilise supply but also support industrialisation through the development of petrochemicals, manufacturing and logistics.
“Energy poverty cannot only be an ideology but action,” he added, emphasising the need for practical solutions over policy rhetoric.
However, the path to expansion is not without constraints. Ayuk stressed that investment will depend on enabling policy environments, including stable regulatory frameworks, competitive fiscal regimes and reduced bureaucratic barriers. He also called for stronger intra African collaboration to address persistent trade and customs challenges that continue to fragment regional markets.
“Tariffs and customs are so difficult and we need to address that. We need to address barriers and build together,” he said.
Financing remains another critical hurdle. With more than 100 billion dollars required to meet projected refining demand, the sector presents both a challenge and an opportunity for African and international financial institutions seeking long term investment prospects.
Ultimately, Ayuk’s message was unequivocal. Africa must take ownership of its energy future by developing capacity across the entire value chain, from extraction to processing and distribution.
“We will never back down on producing oil. We will refine, drill and ensure that our young people across the continent have access to energy. We will never apologise for producing the energy we need,” he said.
As global energy systems continue to evolve, Africa’s ability to build resilient, self sufficient infrastructure will determine not only its economic trajectory, but also its capacity to address one of its most pressing challenges: access to reliable and affordable energy.
