Africa Fuel Sector Set for Strong Growth, according to McKinsey & Company

Management consulting company McKinsey & Company has revealed a long-term demand forecast of 1.4% per annum for fuel products across the continent.

According to Franco Di Giacobbe, Expert Manager of Refineries at McKinsey & Company, LPG and jet fuel used in aviation are expected to drive liquids demand while transportation fuels will also see a strong uptick in the next decade.

“In Africa, demand will see robust growth across all scenarios until at least the mid-2030s,” Di Giacobbe stated in Cape Town on Wednesday adding, “Demand might increase by 1.2 million barrels per day until the early 2030s, compared to 2023 and in the slow evolution scenario, demand is expected to grow even after 2040.”

Di Giacobbe also highlighted that refining capacity will increase by 2030, with the commissioning of the Dangote refinery in Nigeria expected to increase capacity by around 20%.

Meanwhile, additional growth from smaller projects in Algeria, Angola and Ghana will add approximately 100,000 barrels per day (bpd), 30,000 bpd and 40,000 bpd, respectively.