Lagos: Dr Riverson Oppong, Chief Executive Officer of the Chamber of Oil Marketing Companies (Ghana) and Africa Regional Director, has projected that Africa will become the next major growth frontier for the downstream oil and gas industry by 2032. He made this assertion during a session at the Oil Trading Logistics (OTL) Africa Downstream Week 2025 in Lagos, highlighting a significant market growth from 80.5 billion dollars in 2024 to 120.8 billion dollars by 2032.
According to News Agency of Nigeria, Oppong emphasized Africa’s strong market potential compared to traditional regions like Europe and North America, where a decline in demand is anticipated by 2035. He referenced a McKinsey report predicting a demand increase of 2.2 million barrels per day in Africa between 2019 and 2035, translating to a compound annual growth rate (CAGR) of 2.3 percent. This positions Africa alongside South and Southeast Asia as one of the world’s key expanding downstream markets.
Oppong underscored the necessity of digitisation and innovation in downstream operations, declaring them essential for competitiveness and value creation. He noted that digitalising operations could result in significant performance improvements, including a 12-20 percent reduction in operating costs and a 6-12 percent increase in throughput. Other benefits include a 15-25 percent decline in unplanned shutdowns and an 8-12 percent boost in plant efficiency.
He identified technologies such as Advanced Process Control (APC), digital twins, and predictive maintenance as critical to enhancing efficiency and reliability in refineries and depots. Oppong also recommended that operators conduct digital maturity assessments, develop clear transformation roadmaps, and pilot scalable digital solutions.
Further, he highlighted the strategic importance of joint ventures in managing capital intensity, sharing risk, and expanding market access. Smaller operators, particularly in markets like Ghana where the top 10 of over 200 oil marketing companies dominate, can enhance competitiveness through strategic alliances and partnerships.
Oppong called for robust regulatory frameworks that balance innovation with safety and environmental responsibility. He stressed the need for investment in digital infrastructure, data analytics, and workforce skills to ensure long-term sectoral resilience, pointing out that Africa’s energy future will depend on a long-term vision prioritising sustainable value creation over short-term gains.
