We meet against the backdrop of global economic shocks and disruptions arising from the war in the Gulf. Africa today produces approximately 10 million barrels of oil per day, which is about 10 percent of global output. Yet, paradoxically, we remain net importers of petroleum products to the tune of 120 million tonnes annually at a cost of about $90 billion.
At an average export price of $75 per barrel, Africa’s crude production is valued at roughly $270 billion each year. However, if this same production were refined domestically and exported as finished products at an average price of $800 per tonne, it would generate over $500 billion. This represents forgone income of about $230 billion, which is nearly 7.5 percent of our GDP from just one resource.
