{"id":250171,"date":"2024-11-13T12:01:44","date_gmt":"2024-11-13T12:01:44","guid":{"rendered":"https:\/\/www.ghanamma.com\/2024\/11\/13\/arda-proposes-three-tier-strategy-to-promote-africas-energy-independence\/"},"modified":"2024-11-13T12:01:44","modified_gmt":"2024-11-13T12:01:44","slug":"arda-proposes-three-tier-strategy-to-promote-africas-energy-independence","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2024\/11\/13\/arda-proposes-three-tier-strategy-to-promote-africas-energy-independence\/","title":{"rendered":"ARDA proposes three-tier strategy to promote Africa\u2019s energy independence"},"content":{"rendered":"<p><\/p>\n<div>\n<p class=\"article-image\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cdn.ghanaweb.com\/imagelib\/pics\/538\/53895893.295.jpg\" alt=\"Dr. Mustapha Abdul-Hamid, President , ARDA\" title=\"Dr. Mustapha Abdul-Hamid, President , ARDA\" width=\"295\" height=\"284\" \/> <span class=\"image_caption\"><span>Dr. Mustapha Abdul-Hamid, President , ARDA<\/span><\/span><\/p>\n<\/div>\n<div style=\"-webkit-user-select: none; -webkit-touch-callout: none; -moz-user-select: none; -ms-user-select: none; user-select: none;\">\n<p id=\"article-123\">Dr. Mustapha Abdul-Hamid, President of the African Refiners and Distribution Association (ARDA), has proposed a three-tier strategy to promote Africa\u2019s energy independence.<\/p>\n<p>These, he mentioned as harmonisation, infrastructure integration and regional currency adoption.<\/p>\n<p>He said Africa\u2019s current fuel specifications differed greatly from one country to another, adding that it was a disparity that created barriers to regional trade and limited cooperation.<\/p>\n<p>According to a statement copied to the Ghana News agency in Accra on Monday, the President of the ARDA was speaking at the African Energy Week in Cape Town, South Africa and called for a halt in the export of crude oil from Africa, insisting that the continent was far from meeting its energy security amid rising population.<\/p>\n<p>It said, for example, Ghana had a fuel sulfur limit of 50 parts per million (ppm), while several West African neighbours allowed levels between 1,500 and 3,000 ppm, making imports challenging and costly.<\/p>\n<p>\u201cWithout a harmonised specification across Africa, trade within the continent remains difficult, restricting our ability to collaborate effectively,\u201d Abdul-Hamid stated.<\/p>\n<p>He also emphasised the importance of collaboration among regulatory bodies, national oil companies, and governments to develop a unified approach to energy production and distribution, adding that efforts like Ghana\u2019s policy requiring companies to use locally refined fuel for oil extraction machinery strengthened domestic refinery output.<\/p>\n<p>Dr. Abdul-Hamid advocated the establishment of a regional currency that would mitigate the effects of Africa\u2019s dependence on the U.S. dollar.<\/p>\n<p>\u201cCurrently, oil marketers in Ghana require $400 million each month to import refined petroleum products \u2013 a demand that constantly pressures the Ghanaian Cedi. Developing a shared currency within regional blocs like West Africa could reduce these pressures and allow us to strengthen our economies,\u201d he suggested.<\/p>\n<p>He argued that by reducing reliance on foreign currencies for energy transactions, African countries could better stabilise their economies, reduce energy import costs, and foster long-term energy security.<\/p>\n<p>\u201cThe African Refiners and Distributors Association (ARDA) therefore appeals to all 54 African countries to end dolarisation of petroleum products.<\/p>\n<p>Instead, they called on member countries to build integrated infrastructure to guarantee energy security that is independent of developed countries to stabilise their economies.<\/p>\n<p>Dr Abdul-Hamid, who doubles as the Chief Executive of the National Petroleum Authority (NPA) stressed the need for Africa to refine and use its own resources rather than exporting raw crude oil only to re-import refined products.<\/p>\n<p>\u201cNobody puts crude oil in their vehicle or airplane \u2013 everything that generates movement and wealth is a refined product. This underlines the need for closer collaboration between Africa\u2019s upstream and downstream sectors to ensure that the continent fully benefits from its natural resources,\u201d he said.<\/p>\n<p>Secretary General of the African Petroleum Producers Organisation (APPO), Omar Farouk Ibrahim, stressed the need to build robust infrastructure within Africa to reduce dependency on foreign markets and cautioned that reliance on imported resources left African countries vulnerable to international sanctions and supply disruptions.<\/p>\n<p>\u201cWe have vast resources on our continent, yet we often depend on imports for energy. Partnering neighbouring countries to build the necessary infrastructure can secure our energy needs,\u201d Ibrahim said, adding that developing intra-continental infrastructure is crucial to achieving genuine energy security.<\/p>\n<p>Chief Executive of the Association of Oil and Gas Marketing Companies, Riverson Oppong, highlighted Africa\u2019s paradox of exporting raw resources while lacking refined products for domestic use and pointed out that nearly 90 per cent of Africa\u2019s crude production was exported.<\/p>\n<p>\u201cWe have the resources, but we lack access to them because we are locked into a cycle of exporting raw materials and re-importing finished products. This cycle compromises our economic stability and weakens our energy security,\u201d Oppong noted.<\/p>\n<p>He questioned the rationale behind Africa\u2019s continued export of crude oil only to re-import it as refined petrol, a practice he argued weakened local refineries and increases costs.<\/p>\n<p>\u201cDuring a recent visit to Morocco, I saw a refinery capable of processing 550,000 barrels daily, sitting idle like a \u2018white elephant.\u2019 Why are we sending our crude oil to Europe to be refined, only to bring it back to Africa at a premium,\u201d he asked.<\/p>\n<p>Oppong urged African countries to invest in domestic refining capacity and support local refineries to enhance energy self-sufficiency.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Dr. Mustapha Abdul-Hamid, President , ARDA Dr. Mustapha Abdul-Hamid, President of the African Refiners and Distribution Association (ARDA), has proposed a three-tier strategy to promote Africa\u2019s energy independence. These, he mentioned as harmonisation, infrastructure integration and regional currency adoption. He said Africa\u2019s current fuel specifications differed greatly from one country to another, adding that it [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":250172,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-250171","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>ARDA proposes three-tier strategy to promote Africa\u2019s energy independence - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2024\/11\/13\/arda-proposes-three-tier-strategy-to-promote-africas-energy-independence\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ARDA proposes three-tier strategy to promote Africa\u2019s energy independence - Ghanamma.com\" \/>\n<meta property=\"og:description\" content=\"Dr. Mustapha Abdul-Hamid, President , ARDA Dr. Mustapha Abdul-Hamid, President of the African Refiners and Distribution Association (ARDA), has proposed a three-tier strategy to promote Africa\u2019s energy independence. 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