South Africa loses $4.7B on oil refinery closures
Refining capacity in Africa’s largest economy has halved over the past decade.
South Africa's central bank revealed that the country could have saved $4.7 billion on its oil importation costs if it hadn't closed several refineries. According to the South African Reserve Bank, refining capacity in Africa's largest economy has been reduced by half over the past decade. Now, imported refined fuel provides more than half of the nation's energy needs.
Recently, South Africa announced plans to triple its oil refining capacity to mitigate its vulnerability to global price fluctuations. The upheaval caused by the Iran war has led to soaring oil prices, highlighting Africa's heavy dependence on energy imports, which account for approximately 70% of the continent's refined fuel requirements.
This crisis has prompted various nations to reconsider their energy sovereignty strategies. Nigerian billionaire Aliko Dangote is planning to construct a refinery in Kenya, inspired by his own Lagos mega-refinery.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
