Lack of Investment in Infrastructure

A recent report commissioned by Puma Energy has shed light on the challenges facing the liquid fuel supply chain in sub-Saharan Africa. The report, titled “Fuelling Africa’s Potential: Bridging the Gap in Energy Infrastructure”, highlights the bottlenecks and inefficiencies that are impacting energy security and economic development in the region.

According to the report, the demand for fuel in sub-Saharan Africa is expected to grow by 56% by 2040. To meet this growing demand, an investment of $9 billion in pipeline infrastructure is required. The report also identifies potential savings of $10 billion by addressing inefficiencies across the supply corridors analyzed.

The current infrastructure in sub-Saharan Africa is struggling to meet present-day demand, with disruptions in the flow and availability of oil products due to external factors such as the Ukraine-Russia war in 2022. The report also points out the vulnerability of the region to supply chain disruptions, partly due to the lack of coastal and strategic storage capacity.

To improve fuel security and efficiency, the report recommends investments in expanding storage capacity, improving port infrastructure, and building or extending pipelines. These investments have the potential to save billions of dollars in demurrage fees and other costs, as well as reduce greenhouse gas emissions by as much as 750kt annually.

Overall, the report emphasizes the importance of international master-planning of infrastructure development to ensure energy security in sub-Saharan Africa. By addressing the challenges in the liquid fuel supply chain, the region can unlock its economic potential and pave the way for sustainable growth and development.