Africa is positioning itself as a major hub for growth in the downstream oil and gas sector over the next decade, according to Dr. Riverson Oppong, Chief Executive Officer of the Chamber of Oil Marketing Companies (Ghana) and Africa Regional Director.
Oppong made this known at the ongoing Oil Trading and Logistics (OTL) Africa Downstream Week 2025 in Lagos on Thursday, during a session titled “Emerging Business Models within the Downstream Landscape.”
He said the African downstream market was projected to rise from $80.5 billion in 2024 to $120.8 billion by 2032, making it one of the fastest-growing regions globally.
He observed that while energy demand in Europe and North America was expected to slow by 2035, Africa remained a strong and expanding market.
Quoting a McKinsey report, Oppong noted that the continent could experience a demand increase of about 2.2 million barrels per day between 2019 and 2035, representing a compound annual growth rate of 2.3 per cent.
He said this growth placed Africa alongside South and Southeast Asia as a key driver of global downstream expansion.
Oppong underscored the need for digitisation and innovation in downstream operations, describing technology adoption as essential for improving competitiveness and value creation.
According to him, digital transformation could enhance operational performance through a 12–20 per cent reduction in costs, a 6–12 per cent rise in throughput, and up to 25 per cent fewer unplanned shutdowns.
He cited technologies such as Advanced Process Control (APC), predictive maintenance, and digital twins as crucial to optimising refinery and depot operations.
Oppong also urged operators to evaluate their digital readiness, establish transformation roadmaps, and invest in scalable digital tools.
He explained that joint ventures and strategic partnerships would remain important in managing investment risks and expanding market access, especially in countries where a few large players dominate the market.
He further emphasised the importance of regulatory systems that encourage innovation while upholding safety and environmental standards, alongside greater investment in digital infrastructure and workforce development.
Oppong concluded that Africa’s downstream success would depend on sustained commitment to innovation, collaboration, and sustainable value creation that secures the continent’s place in the global energy future.