…urges African Oil, gas players to embrace digitalisation, new business models for competitiveness
Oredola Adeola
Africa has been projected to emerge as the next growth frontier for the downstream oil and gas industry, with the market valued at $80.5 billion in 2024 and expected to reach $120.8 billion by 2032, Dr. Riverson Oppong, Chief Executive Officer of the Chamber of Oil Marketing Companies, Ghana, and Africa Regional Director, has stated.
He has therefore urged industry players to embrace digital operations and innovative business models to capture greater value and remain competitive in the evolving market landscape.
He disclosed this while speaking at the OTL Africa Downstream Week 2025 in Lagos during a session on “Emerging Business Models within the Downstream Landscape.”
Dr. Oppong noted that while traditional markets in Europe and North America are projected to experience declining demand by 2035, Africa’s outlook remains strong.
Citing a McKinsey report, the CEO, Chamber of Oil Marketing Companies, Ghana, stated that the continent is expected to record significant demand growth, with an increase of 2.2 million barrels per day between 2019 and 2035 — representing a compound annual growth rate (CAGR) of 2.3%.
This, according to him, positions Africa as one of the key expanding markets alongside South and Southeast Asia.
Dr. Oppong stressed that digitization is no longer optional in Africa’s downstream oil and gas sector, describing it as a core framework for value creation and competitiveness in modern operations.
According to him, digitalizing downstream operations can deliver significant performance gains — including a 12–20% reduction in operating costs, 6–12% improvement in throughput, 15–25% decline in unplanned shutdowns, and an 8–12% boost in plant efficiency.
He outlined key components of digital business models, such as Advanced Process Control (APC) and Optimization, which leverage real-time monitoring systems and digital twins to enhance operational simulation and decision-making.
Dr. Oppong also highlighted predictive and prescriptive maintenance as vital tools that allow operators to analyze equipment data, anticipate failures, and cut maintenance expenses.
On the steps toward achieving digital transformation, he advised companies to first assess their digital maturity across selected business lines, develop a clear vision for change, and set measurable expectations by benchmarking against global digital leaders.
He further urged operators to identify ready business areas, run proof-of-concept pilots, and scale successful digital solutions company-wide to maximize impact.
Dr. Oppong further underscored that Joint Ventures (JVs) remain a crucial business model for managing capital intensity, operational risks, and market access in downstream operations.
He outlined the strategic advantages of JVs to include risk sharing, enhanced market access, technology transfer, and infrastructure optimization, adding that these partnerships can significantly strengthen resilience and competitiveness across the sector.
Citing Ghana as an example, he noted that although over 200 Oil Marketing Companies (OMCs) operate in the country, the top 10 players dominate most of the market, suggesting that smaller operators can boost their market share and efficiency through strategic alliances and joint ventures.
Dr. Oppong emphasized that the successful implementation of emerging business models in Africa’s downstream sector will depend on robust regulatory frameworks that balance innovation with safety and environmental protection.
He called for greater investment in digital infrastructure, data analytics capabilities, and workforce skill development, alongside fostering a collaborative mindset that embraces partnerships and ecosystem-based approaches.
According to him, the continent’s energy future will hinge on a long-term strategic vision that prioritizes sustainable value creation over short-term gains.
