Africa’s Fuel Import Reliance Threatens Economic Stability, Warns ARDA

The African Refiners and Distributors Association (ARDA) has warned that Africa’s heavy reliance on imported fuel poses a severe strategic risk, with a 30-day disruption capable of crippling economies, grounding flights, halting transport, and disrupting essential services like healthcare and supply chains. Despite producing over 5 million barrels of crude oil daily, the continent imports more than 70% of its refined petroleum, leaving it vulnerable to global supply shocks. 

Systemic Collapse Looms Without Energy Sovereignty

Anibor Kragha, ARDA’s Executive Secretary, stated during the ARDA Week 2025 conference in Cape Town that Africa’s fuel import dependence could lead to systemic economic collapse if supplies were halted. A prolonged disruption would paralyze aviation, mining, construction, and critical infrastructure, stranding goods, cutting power to hospitals, and disrupting urban water supplies. Rural clinics and major cities would face outages, while mining sectors in key nations like South Africa, Nigeria, and DRC would stall, costing billions in lost revenue. 

Outdated Refineries Widen Energy Gap 

Although Africa has over 40 refineries, many are outdated or underutilized. Nigeria, the continent’s top crude producer, still imports half its fuel despite a 1.1 million bpd refining capacity, including the new Dangote refinery. Congo aims to double crude output but refines just 24,000 bpd—far below demand. ARDA projects Africa’s energy needs will double by 2050, urging immediate refinery upgrades and regional fuel specification harmonization to boost intra-African trade and investment. 

Call for Strategic Reserves and Investment Mobilization

ARDA’s “Africa First” plan emphasizes expanding refining capacity, building infrastructure, and leveraging Africa’s $4 trillion in domestic capital, including pension and sovereign wealth funds, for energy projects. The association also advocates for national fuel reserves, noting most African nations lack sufficient stockpiles. Kragha stressed that energy security is a lifeline, requiring political will and continental unity to ensure sustainable development and reduce import dependence.