Africa’s oil industry is undergoing a remarkable transformation, particularly in the downstream sector. Several countries across the continent are investing heavily in building new refineries to reduce dependence on imported petroleum products, improve energy security, and capture more value from their own crude oil production. According to recent industry analyses, Africa is projected to add approximately 1.2 million barrels per day of refining capacity by 2030, signaling a significant shift in the continent’s energy landscape.
Uganda: Hoima Refinery
Uganda has taken a major step in its energy sector with the signing of an Implementation Agreement for the long-awaited Hoima Oil Refinery Project. The agreement, finalized between the Ministry of Energy and Mineral Development (MEMD), Uganda National Oil Company (UNOC), and UAE-based Alpha MBM, was signed at State House in the presence of President Museveni, who thanked the UAE investors for their commitment.
The refinery, to be built in Kabaale, Hoima District, will have a capacity of 60,000 barrels per day, developed in two phases, and is expected to be operational within three years. It will process crude oil from Uganda’s Albertine Graben, producing gasoline, diesel, and jet fuel, significantly reducing reliance on imports and enhancing national energy security. Supporting infrastructure will include a multi-product pipeline to Namwabula, storage facilities, and access roads. The project, estimated at $4 billion and fully equity-financed, positions Uganda as a regional hub for petroleum refining and distribution, with first commercial output anticipated around 2028.
Angola: Cabinda Refinery
Angola marked a significant milestone in its energy sector with the inauguration of the Cabinda Oil Refinery in September 2025. Located in the Malembo Plain of Cabinda Province, the refinery is a public-private partnership between UK-based Gemcorp, holding a 90% stake, and state-owned Sonangol with 10%. Phase one of the project, costing over $500 million, has a processing capacity of 30,000 barrels per day, producing diesel, jet fuel, naphtha, and heavy fuel oil for both domestic use and export. Phase two is planned to double capacity to 60,000 barrels per day, incorporating a hydrocracking unit to boost diesel and jet fuel output. The refinery addresses Angola’s reliance on imported refined products, which cost the country over $2 billion annually, and is expected to create thousands of jobs while supporting local skills development. Construction began in 2019, overcoming challenges from landmines, the COVID-19 pandemic, and inflation, positioning the refinery as a key step toward energy security and industrial growth.
Angola: Lobito Refinery
Angola is advancing its refinery infrastructure with the Lobito Refinery Project, a landmark energy initiative set to significantly boost the country’s refining capacity. Located in Lobito, the refinery will have a processing capacity of 200,000 barrels per day and is being developed under the project management of US-based engineering firm KBR. The contract, issued by Angola’s state-owned oil company Sonangol, covers engineering, procurement, and construction services, building on KBR’s two-decade-long partnership with Angola. The project aims to enhance Angola’s energy independence, reduce reliance on fuel imports, and position the country as a regional refining hub. KBR’s Front-End Engineering Design (FEED) phase has been completed, delivering a cost-competitive, environmentally conscious plan that meets both African and European product standards while reducing water consumption and wastewater by 30%. Upon completion, the Lobito Refinery will contribute to economic growth, generate significant employment, and support sustainable energy development in Angola.
Angola: Soyo Refinery
The Soyo Oil Refinery in Angola is a major project aimed at reducing the country’s reliance on imported fuels, which currently account for 80% of domestic consumption. Located in Zaire Province, the refinery is being developed by London based Gemcorp with a planned capacity of 100,000 barrels per day. Construction is scheduled to start once the site is fully demined, with associated infrastructure including roads, a 60–100 MW power plant, and a maritime terminal. The first phase is expected to produce 60,000bpd
The facility will produce Euro-5 grade cleaner fuels and is expected to commence production in the fourth quarter of 2025. The Soyo refinery is part of Angola’s broader strategy to enhance refining capacity alongside the 200,000 bpd Lobito facility, the 60,000 bpd Cabinda refinery, and the modernization of the 65,000 bpd Luanda refinery. These initiatives aim to strengthen energy security, stimulate economic growth, create jobs, and reduce the country’s fuel import bill while benefiting neighboring countries.
Ghana: Emerging Refining and Petrochemical Complexes
Ghana has announced plans to construct three oil refineries along with five petrochemical plants and large-scale storage infrastructure. The first refinery is expected to have a capacity of 300,000 barrels per day, with the overall investment projected at $60 billion. This ambitious program is intended to reduce Ghana’s dependence on imported fuels, create local jobs, and stimulate industrial growth through the development of downstream infrastructure. The government’s long-term vision is to transform Ghana into a regional hub for petroleum processing, leveraging these large-scale projects to capture more value from its energy resources.
Nigeria: Dangote and Akwa Ibom Refineries
Nigeria continues to expand its refining capacity with both operational and new projects. The Dangote Refinery, already the largest single-train refinery in the world, has plans for expansion that could increase its output from 650,000 barrels per day to 1.4 million barrels per day. In addition, a new refinery is planned in Akwa Ibom State with a capacity of 200,000 barrels per day. These projects are crucial for Nigeria, a country that historically relied heavily on imported refined petroleum products despite being a major crude oil producer. Expanding refining capacity is central to Nigeria’s strategy of meeting domestic demand and enhancing regional export potential.
Strategic Implications
The development of these refineries has far-reaching implications for Africa. By refining more crude oil domestically, countries can retain more value from their natural resources, reduce fuel import costs, and shield themselves from global supply shocks. The construction and operation of these facilities also provide employment opportunities and technology transfer, with training programs preparing local workers to operate complex refinery infrastructure. Furthermore, as refining capacity grows, intra-African trade in refined petroleum products is expected to increase, creating new economic linkages between neighboring countries.
Challenges and Risks
Despite the potential benefits, refinery projects in Africa face challenges. Large-scale development requires significant capital investment, often necessitating complex public-private partnerships and foreign financing. Technical expertise is critical, and shortages in skilled labor can delay construction and commissioning. Regulatory uncertainty, political instability, and shifts in energy policy can complicate project execution. Moreover, global market dynamics, including fluctuating oil prices and the ongoing energy transition toward renewable energy, pose additional risks.
Conclusion
Africa is entering a new era in its oil industry, shifting from crude exporters to processors capable of refining and marketing petroleum products locally. Countries such as Angola, Uganda, Ghana, and Nigeria are leading this transformation with projects that promise to enhance energy security, stimulate industrial development, and create jobs. Successfully executing these initiatives will require careful management of financial, technical, and regulatory challenges, but their completion has the potential to reshape the continent’s energy sector and strengthen its economic resilience.
