BY DAYO ADESULU
The African Energy Chamber (AEC)has announced that Mr Anibor Kragha, Executive Secretary of the African Refiners and Distributors Association (ARDA) will attend and participate in Africa’s premier energy event, African Energy Week (AEW) 2021.
Representing the only pan-African organization for Africa’s downstream oil sector, Mr Kragha is expected to drive the discussion around the need for a unique African energy transition plan, emphasizing the role that clean fuels and targeted financing play in both Africa’s downstream oil sector and overall energy future.
Since his appointment to Executive Secretary in April 2020, Mr Kragha has been instrumental in expanding Africa’s downstream sector, driving a strong narrative that Africa requires its own adapted energy transition plan. Notably, Mr Kragha has been a key defender of Africa’s oil sector, reiterating that oil will continue to have a vital role to play in addressing increasing energy demand and accelerating socio-economic growth.
According to Mr Kragha, the International Energy Agency’s Net Zero Emissions by 2050 plan does not take into consideration Africa’s rising population, significant energy crisis, or lack of development. Therefore, he proposes an alternative, Africa-centric plan that takes into account such factors, driving development through the adoption of clean fuels. He is expected to drive this narrative at AEW 2021, providing insight into the role and value of clean fuels in Africa’s energy sector.
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Mr Kragha has and continues to be a strong advocate for clean fuels, emphasizing the continent’s need to upgrade its existing 36 refineries to produce petroleum products with a planned level of Sulphur content. According to him, in order for the continent to address critical health concerns as well as ensure a viable energy supply for its growing urban population, an upgrade to cleaner fuels is vital. By upgrading refineries to produce low-sulphur fuels, replacing biomass with Liquified Petroleum Gas, and developing the right storage and distribution infrastructure to support cleaner fuels, Africa will be able to transition to cleaner fuel sources while taking into account growing demand.
In addition to infrastructure upgrades, he justifies the need for supportive government policies and public financing. Speaking at an ‘Upgrading African Refineries to Produce Cleaner Fuels’ workshop hosted by the ARDA, Mr Kragha suggested that Africa requires “cleaner, harmonized, pan-African fuel specifications,” emphasizing an intra-African approach to transitioning to cleaner fuel sources. By prioritizing policies to address public health and environmental issues for clean air, fuels and vehicles, Mr Kragha promotes a harmonized energy transition plan and will drive a discussion on intra-African opportunities and challenges at AEW 2021.
“Africa cannot be expected to abandon oil and leapfrog to a renewable energy future without a plan and funding of local businesses. With population growth increasing demand and development challenges hindering growth, the oil will continue to have a vital role to play. Mr Kragha is a particularly valuable participant at AEW 2021 as he will drive a discussion on African downstream opportunities, challenges, and potential. He brings on board a reservoir of knowledge and tested leadership within the energy sectors that makes him one of the leading voices offering pragmatic common-sense solutions for the Energy sector,” stated NJ Ayuk, Executive Chairman, the AEC.
What’s more, Mr Kragha introduces the need for targeted financing within Africa’s downstream oil sector, recognizing the challenges in securing foreign capital for oil projects, in which he is expected to promote the various investment opportunities prevalent across Africa. Specifically, with Africa’s existing 36 refineries requiring approximately $15.7 billion in order to fully upgrade to clean fuels, Mr Kragha promotes lucrative investment opportunities for regional and international investors. AEW 2021 presents the ideal platform for the downstream sector to showcase such opportunities, driven by the event’s promotion of oil’s role in Africa.
While the world tries to move away from oil, industry experts such as Mr Kragha recognizes its value in addressing developmental challenges in Africa. Instead of rejecting oil’s potential and value, the utilization of cleaner fuels, achieved through refinery upgrades and clear fuel specifications, maybe the best solution for Africa’s energy crisis and overall transition. AEW 2021 aims to promote oil’s role while at the same time recognizing the need for an energy transition.
