Current conflicts have been a reminder of the fragility of global energy networks, with 30% of the world's supply of oil and gas now shut down owing to the disruption of shipping through the Strait of Hormuz. So highlighted Africa-focused, Dubai-based, financial services group Premier Invest founder and managing partner Rene Awambeng, in a video address (from Washington DC) to the African Refiners and Distributors Association conference, at the Century City Conference Centre, in Cape Town. 

This shutdown has triggered price fluctuations and supply concerns across global markets. It is having concrete impacts on African countries, ranging from pressures on national budgets and/or on foreign reserves, all the way down to queues at petrol stations.

Further, Africa had the world's fastest-growing population, he pointed out. By 2050, a quarter of the world's population would be African. The continent's energy demand was growing at a scale that it could not currently meet. 

"However, these challenges should not be seen as the end," he affirmed. "Africa is resource rich."

He stressed that the continent had to process its own resources. Africa had to industrialise.

Regarding the refining sector, he pointed out that the continent's capacity remained limited, compared with its needs. Africa was a large producer of crude oil but remained a net importer of fuel. Also, lack of harmonisation of standards across African countries made intra-African trade in fuels difficult. The continent's regulatory frameworks had to be harmonised, to end this market fragmentation.

"Our pathway must be pragmatic," he asserted. Africa had to focus both on energy security and the green energy transition. They were equally important. It was not a binary choice. For example, adoption of liquified petroleum gas would cut carbon emissions, reduce deforestation and improve health. 

Africa also had to embrace new refining technologies, to improve efficiency and reduce carbon emissions. He praised Nigeria's Dangote refinery for doing so, and called on other African countries, by name (including South Africa), to follow suit.

All this would require significant investments, not only in refining but across the entire downstream value chain. There was a need to advance projects that were financially sound. Blended finance, debt finance (including eurobonds) and equity finance all had to be used. He praised Angola for last month seizing the opportunity presented by the higher oil prices to issue $2.5-billion in eurobonds, at favourable rates.

Africa was the future for foreign investment, he affirmed, particularly when it came to natural gas. Engagements with Gulf countries offered the potential for both investment and technology transfer.

Africa had a choice -- it could remain exposed to external events or build the infrastructure it needed. This might be difficult, but it was doable. The continent needed to significantly increase its refining capacity. 

Africa was now a safe haven in a turbulent world. The continent had to take this opportunity. "It is time to build, it is time to invest," he concluded.