Africa's Energy Future Hangs in Balance as Oil Prices Soar

The ongoing global oil and gas crisis has reignited debates about Africa's energy future. NJ Ayuk, executive chairman of the African Energy Chamber, said 'Refine baby, refine' in April at the African Refiners & Distributors Association Week in Cape Town.

The conflict in the Gulf has led to increased prices for petroleum products in countries like Kenya, which relies 100% on imports. Eight out of twelve countries worldwide whose fossil-fuel imports cost more than 10% of their GDP are in Africa, according to a report from Power Shift Africa.

African oil producers are increasing local production and refining capacity to reduce dependency on high-risk sources. East African countries are discussing setting up a joint oil refinery in Tanga, Tanzania, while Ghana plans a 'Petroleum Hub' to refine 900,000 barrels per day.

The current crisis has exposed vulnerabilities in oil and gas dependence, but several countries are still investing in multi-billion-dollar gas-to-power projects. Power Shift Africa's report argues that fossil fuels have contributed to economic vulnerability, inequality, and structural constraints on growth in African countries.