By Yunus Yusuf
Dr Riverson Oppong, Chief Executive Officer of the Chamber of Oil Marketing Companies (Ghana) and Africa Regional Director, says Africa is set to become the next major growth frontier for the downstream oil and gas industry.
He said that the market was projected to grow from 80.5 billion dollars in 2024 to 120.8 billion dollars by 2032.
Oppong disclosed this at the ongoing Oil Trading Logistics (OTL) Africa Downstream Week 2025 in Lagos on Thursday during a session on “Emerging Business Models within the Downstream Landscape”.
He said that the continent remains a strong market compared to traditional regions such as Europe and North America, where demand was expected to decline by 2035.
Citing a McKinsey report, he noted that Africa is projected to record a demand increase of 2.2 million barrels per day between 2019 and 2035, representing a compound annual growth rate (CAGR) of 2.3 per cent.
He said that this positions Africa alongside South and Southeast Asia as one of the world’s significant expanding downstream markets.
Oppong called for urgent digitisation and innovation in the downstream operations, saying it was “no longer optional but fundamental” for competitiveness and value creation.
According to him, digitalising operations could yield performance improvements including: 12–20 per cent reduction in operating costs and 6–12 per cent increase in throughput.
“Others are 15–25% decline in unplanned shutdowns and 8–12% boost in plant efficiency,” he said.
He identified technologies such as Advanced Process Control (APC), digital twins, and predictive maintenance as critical enablers of efficiency and reliability across refineries and depots.
Oppong also advised operators to conduct digital maturity assessments, develop clear transformation roadmaps, and pilot scalable digital solutions.
He also explained that joint ventures would continue to be strategic tools to manage capital intensity, share risk, and expand market access.
“Smaller operators can enhance competitiveness through strategic alliances and partnerships, especially in markets like Ghana where the top 10 of over 200 oil marketing companies dominate,” he noted.
He called for robust regulatory frameworks that balance innovation with safety and environmental responsibility, as well as investment in digital infrastructure, data analytics, and workforce skills to ensure long-term sectoral resilience.
“The continent’s energy future will depend on a long-term vision that prioritises sustainable value creation over short-term gains,” Oppong said.(NAN)(www.nannews.ng)
Edited by Ismail Abdulaziz
