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- Cheat sheet: Five reasons for high fuel imports per head
Cheat sheet: Five reasons for high fuel imports per head
(i) Limited refining capacity: Many African countries lack sufficient processing infrastructure. So even if they produce oil, their fuel must be imported.
(ii) Lack of investment in renewables: Green substitutes for fossil fuel require massive, long-term capital spend.
(iii) Subsidised consumer fuel: African governments are under political pressure to misprice fuel to help the poor.
(iv) Corruption & state capture: In some countries, powerful fuel cartels insist on sustaining dysfunctional policies for personal gain.
(v) Progressive grid failure: Broken infrastructure requires ever more fuel to maintain the same level of electricity.
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