Africa's Fuel Shortfall to Reach 86 Million Tonnes by 2040

A report released by the African Financing Corporation (AFC) indicates that Africa will experience an 86 million tonne fuel shortfall by 2040, up from 74 million tonnes in 2023. The continent currently imports 70% of its refined fuel, which is valued at $230 billion annually and includes essential goods such as food, plastic, steel, and fertilizers.

Rita Babihuga Nsanz, the AFC's chief economist, highlighted that Africa's reliance on fuel imports will continue to rise, making it vulnerable to geopolitical tensions, particularly in the Strait of Hormuz, which accounts for a fifth of global fuel transport. The report also notes that despite Africa holding 80% of the world's phosphate reserves, it only produces 20% of global fertilizer stocks, indicating a significant opportunity for improvement.

Babihuga Nsanz emphasized the need for Africa to address its energy shortfall by developing new hubs and improving existing assets, citing issues with Zambian dams and Angolan hydropower not being connected to regional grids.