Several African nations, including South Africa, have contacted the Dangote Petroleum Refinery to secure fuel supplies after disruptions tied to the ongoing conflict involving Iran, Bloomberg reported on Friday.
Findings indicate that the 650,000-barrels-per-day refinery owned by Nigerian billionaire Aliko Dangote has received several inquiries from governments searching for alternative fuel sources.
South Africa is said to be pursuing a 12-month supply agreement, while countries like Ghana and Kenya have also made contact with the refinery.
This situation arises as the Middle East crisis continues to affect global fuel supply chains, heightening concerns across multiple regions.
Within Africa, the effects are expected to be more severe in eastern and southern areas, where roughly 75 percent of refined fuel imports originate from the Middle East, according to energy consultancy CITAC.
According to Bloomberg, South Africa said in a statement on Wednesday that it is working with stakeholders to secure crude oil and refined products from varied sources to manage potential supply risks.
The government added that it “is actively coordinating with industry stakeholders to secure both crude oil and refined petroleum products from a diversified range of sources.
“A comprehensive plan is in place to manage potential supply risks.”
In an interview with The Economist, Aliko Dangote, President of the Dangote Group, stated that availability, rather than pricing, has become the primary concern in the current situation.
“I think the situation will continue for a while,” he said.
Despite these concerns, authorities in South Africa said the country has enough fuel for the coming weeks, while Kenya also noted there is no immediate risk of shortages.
Industry data further indicate that Africa’s reliance on fuel imports has grown due to declining refining capacity in several countries, increasing vulnerability to external shocks.
The Dangote Petroleum Refinery is expected to play a significant role in easing supply pressures, although about 75 percent of its production is allocated for domestic use, with the remainder available for export.