Middle East crisis: Africa’s chance to break the vicious cycle in downstream

Africa has proved highly vulnerable to global oil product supply shocks due to its strong reliance on imports. The Middle East crisis exposed this structural vulnerability and left several countries stranded with insufficient supplies. In our report, we present the vicious circle in which African governments keep prices and margins artificially low. They pay hefty subsidy bills while being unable to finance costly infrastructure, yet deter private players with heavy regulations. The report examines different scenarios based on how governments respond to the crisis.