African nations urged to build resilient energy systems after Hormuz disruption
The recent Strait of Hormuz crisis highlighted Africa's vulnerability to energy shocks, prompting calls for systematic resilience rather than ad-hoc responses.
The Hormuz Strait standoff exposed how quickly African economies can be rattled by external energy disruptions, with fuel costs soaring in Lagos, construction sites in Addis Ababa shutting down and fishing fleets in Maputo left idle. While richer nations mitigated impacts through strategic stockpiles and diplomatic leverage, African governments had few buffers. The analysis urges a redesign of energy policy: upgrading grid efficiency to cut 12-20% transmission losses, expanding renewable mixes as Kenya has done, and increasing domestic refining capacity exemplified by Nigeria's Dangote Refinery challenges.
It also recommends treating price volatility as a calculable risk alongside currency and credit fluctuations. Investing in these measures could lower consumer costs, reduce emissions and strengthen industrial growth, turning the Hormuz episode into a catalyst for lasting energy security.
Why it matters
Energy instability can cripple African economies, so building resilient systems is crucial for growth and stability.
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