Africa warned of major fuel shortfall and import risks
The Africa Finance Corporation has raised concerns about the continent’s heavy reliance on imported fuel and goods. According to a new report, Africa could face a significant fuel shortfall in the coming years. Rita Babihuga-Nsanze of the AFC highlighted how recent conflicts have exposed vulnerabilities in Africa’s supply chains. The report also points to missed opportunities in utilising Africa’s own resources and infrastructure.
What we know
- The Africa Finance Corporation says Africa is heading for an 86 million tonne fuel shortfall by 2040.
- Africa currently imports over 70 percent of its refined fuel and $230 billion worth of essential goods each year.
- The continent’s dependence on fuel imports is projected to rise from 74 million tonnes in 2023 to 86 million tonnes in 2040.
- Rita Babihuga-Nsanze noted that chokepoints like the Strait of Hormuz have left East African countries vulnerable to shortages.
- The report suggests that improving local production and infrastructure could help address these vulnerabilities.
