APPO SG’s EDITORIAL – JUly 2026

Africa’s energy sector is entering a decisive phase in its history. For too long, our continent has exported most of its crude hydrocarbons while importing a large part of the refined products it consumes. This structural imbalance has weakened our economies, exposed our countries to the volatility of international markets and limited local value creation.

It is in this context that APPO, in collaboration with ARDA, is working to set up an African refining model adapted to the realities of the continent. This initiative is not just a technical project. It responds to a strategic requirement: that of better transforming our resources at home, for our populations, our industries and our economies.

A need that has become urgent   

The explanatory statement is simple. Africa produces oil and gas, but it still does not sufficiently refine its own volumes. This situation has several major consequences: dependence on fuel imports, high cost of logistics, exposure to external shocks, poor security of supply and the flight of a significant part of the added value from the continent.

By strengthening African refining capacities, we can begin to correct this historical anomaly. It is not just a question of increasing existing capacity, but of devising a more coherent, integrated and realistic model, which takes into account local demand, market size, financing constraints, environmental requirements and profitability imperatives.

A model designed for Africa

The work with ARDA aims to define an African refining framework based on pragmatic solutions. It is not a question of mechanically copying external models, which are often unsuited to our markets, but of building an African approach to refining, based on several principles.

Firstly, the complementarity between producer countries, consumer countries and logistics corridors must be better organised. Secondly, refining capacities must be designed in relation to the real needs of domestic and regional markets. Finally, the issue of distribution, storage, intermediate products and transport infrastructure must be integrated from the design stage.

This model is also based on a fundamental idea: refining should no longer be seen as an isolated activity, but as a central link in an integrated African energy value chain.

How this model will be made

The implementation of this initiative will be gradual, through a structured and inclusive approach.

The first step is to take stock of existing refining capacities, ongoing projects, unmet needs and market prospects in the various African sub-regions. This mapping will make it possible to identify areas of convergence and opportunities for cooperation.

The second stage will focus on the definition of a common technical and institutional framework, developed with ARDA, in order to guide States, regulators, investors and operators towards more suitable refining solutions.

The third step will be to mobilize stakeholders, including governments, national companies, private operators, financial institutions and technical experts, around concrete projects that can be developed at the national, sub-regional or continental level.

Finally, the model will need to be accompanied by financing mechanisms, incentive policies and favourable regulatory frameworks to make projects bankable and sustainable.

For what purposes

The end goal is clear: to refine more to import less, to create more value at home and to strengthen the continent’s energy security.

This model should enable Africa to reduce its dependence on imported refined products, stabilize its supplies, support industrialization, create skilled jobs and improve the economic resilience of Member Countries.

It is also part of a broader vision of energy sovereignty. Africa must not only produce for export; it must also transform in order to consume, to industrialize and to prosper.

By working with ARDA, APPO confirms its commitment to promoting African solutions to African challenges. This partnership illustrates a strong conviction: our energy future will depend on our ability to better organise our resources, to better structure our markets and to better value our products.

APPO will therefore continue to work, alongside its partners, to make refining a real lever for development, energy security and continental integration.