Africa's Oil Consumption Projected to Increase to 4.5 Million Barrels per Day by 2050
Africa's oil consumption is expected to rise from 1.8 million barrels per day to 4.5 million barrels per day by 2050, driven by significant population growth. This increased demand for transport fuels and liquefied natural gas will require over $100 billion in investments for infrastructure improvements, while the continent remains reliant on imported petroleum, exposing it to market volatility and supply disruptions.
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Oil consumption in Africa is forecasted to rise from 1.8 million barrels per day (bpd) to 4.5 million bpd by 2050, according to a report from the African Refiners and Distributors Association. The increase is attributed to a projected population growth where 40% of the world's population will be in Africa, driving demand for transport fuels and liquefied natural gas (LNG).
Despite this demand, Africa continues to depend on imported petroleum products, leading to market volatility and susceptibility to exchange rate fluctuations and supply disruptions. To meet the projected demand by 2050, the continent will require over $100 billion in investments for refinery modernization, capacity expansion, port deepening, storage area increases, and improvements in transport infrastructure, including roads, railways, and pipelines.
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