South Africa, other countries want deal with Dangote refinery amid global oil crisis

The findings revealed that the 650,000 barrel per day refinery owned by Nigerian billionaire Aliko Dangote has received several inquiries from governments looking for alternative fuel sources.

South Africa is reportedly seeking a 12-month supply contract, while countries such as Ghana and Kenya have also reached out to refineries.

The development comes as the Middle East crisis continues to disrupt global fuel supply chains, raising concerns across several sectors.

The impact is expected to be more pronounced in the eastern and southern regions in Africa, where about 75 percent of refined fuel imports come from the Middle East, according to energy consultancy CITAC.

Bloomberg reports that South Africa said in a statement on Wednesday it was engaging stakeholders to secure crude oil and refined products from different sources as part of efforts to manage potential supply risks.

The government said in the statement that it is actively coordinating with industry stakeholders to secure both crude oil and refined petroleum products from various sources.

“A comprehensive plan is in place to manage potential supply risks.”

Aliko Dangote, chairman of Dangote Group, in an interview with the Economist said that in the current situation availability rather than pricing has become the major concern.

“I think the situation will continue for some time,” he said.

Despite the concerns, South African officials said the country had enough fuel for the coming weeks, while Kenya also indicated there was no immediate risk of shortages.

Despite the concerns, South African officials said the country had enough fuel for the coming weeks, while Kenya also indicated there was no immediate risk of shortages.

Industry data also shows that declining refining capacity in many countries has increased Africa's dependence on fuel imports, increasing its sensitivity to external shocks.

The Dangote refinery is expected to play a key role in alleviating supply pressure, although about 75 percent of its output is reserved for domestic use, with the remainder available for export.