Thursday,March 28, 2019 6:00PM / Sahara Group

The adoption ofunified standards across Africa will create a bigger and more effectiveregional market that will enhance the continent’s competitive positioning inglobal energy markets, Tope Shonubi, Executive Director, Sahara Group has toldstakeholders at the African Refiners Association (ARA) meeting in Cape Town. 

Shonubi said theexistence of a fragmented petroleum products market with different productspecifications, sulphur content and emission requirements remains a hugestumbling block to accessing the benefits that can accrue from intra-regionaltrade in the sector. 

“Adoption ofsimilar specifications and standards has been achieved across Europe and mostof North America creating a single larger market for petroleum trade. Whilegasoil specifications remain fragmented across Africa, jet fuel specificationsare almost completely unified across the world. This similarity has improvedthe ease of trading jet fuel across borders, ensured access to a wider marketand enhanced competitiveness in the aviation industry,” he said. 

Shonubi urged allstakeholders to embrace the AFRI-4 standards which were the outcome of apartnership between ARA and the World Bank to promote the adoption of a singlestandard for cleaner fuels. 

According to him,“the adoption of the Afri-4 Specifications will guarantee unified productstandard across the region, ease of intraregional petroleum product trade,reduction in bulk transportation costs and optimization of regionalinfrastructure. This will ultimately make Africa a more influential economic block” 

He added thatunified standards would de-fragment African markets resulting in favourableeconomies of scale in intraregional trade, regional harmonization of taxes andexcise duties, reduction in smuggling and adulteration of products, improved local refining capacity, reduced landing costs of petroleum products,joint infrastructure projects as well as export diversification and access to alarger customer base. 

Shonubi saidAfrica must accord the prospects of intra-regional trade the urgency it deservesto ensure accelerated economic development. “In line with the vision of aharmonized Africa, Sahara Group is building an integrated energy businessacross Middle Africa to harness the potential of intra-regional trade. We aredelighted to be one of the first African companies to carry out full cyclecrude and product trade transactions using only African resources within thecontinent. All transactions were carried out by Africans for Africans usingAfrican resources. The future of our business depends on how well we can worktogether across Africa.” 

He concluded byurging ARA members and other stakeholders in Africa’s energy sector to worktowards developing a competitive African Brand. “Africa countries cannot hopeto shape globalization or even retain marginal relevance individually. It isonly by working together that we have the weigh to influence the big picture.”

Related News

1.       Tonye Cole Co-Founder Sahara Group, Steps Down FromBoard To Participate In Politics

2.     Exclusive -Tonye Cole shares insights on Power Privatization

3.     Sahara PowerGroup backs 'Light Up Nigeria Energy Conference

4.     EU, Sahara Groupto partner on improving Power and Child nutrition

5.     Sahara GroupUpgrades Vocational Centers, Empowers 2600

6.     SaharaFoundation Targets 12m Beneficiaries Through ... - Proshare 

7.     Sahara Group marks20th anniversary with sustainable development  

8.    DPR mistaken insuspension order to Sahara Energy - Proshare