Angola continues to produce only a small portion of the lubricants it consumes, despite the domestic market moving more than 90,000 metric tons per year, valued at around $300 million, revealed on Thursday (5) in Luanda, the Minister of Mineral Resources, Oil, and Gas, Diamantino Azevedo.
The minister acknowledged that domestic production capacity remains limited, covering less than 20% of the total volume sold in the country.
Speaking at the opening of the event “Coffee with the Bank in Downstream – Lubricants Segment,” the minister stressed that the sector has broad investment potential, especially in a context where free pricing and the liberalization of the entire value chain – from production to marketing – create more favorable conditions for the entry of new operators and the growth of the industry.
According to the minister, Angola currently has only one lubricant manufacturing plant, with an installed capacity of 17,600 metric tons, as well as a used lubricant oil refining plant with a capacity of 283 metric tons. Even adding these infrastructures together, national production remains insufficient to meet domestic market demand.
The country also has a facility dedicated to filling lubricants, but according to the official, the current stage of development of the Angolan economy highlights the need for greater industrial investment in this segment.
“Considering the country’s development challenges and the levels of growth already achieved, we have no doubt about the great opportunity this market offers Angolan companies in creating sustainable value for the sector and the economy in general,” he said.
For the minister, the meeting between operators in the sector and financial institutions should act as a catalyst for new investments, strengthening access to financing, means of payment, and capitalization for companies operating in this market. In this sense, the minister advocated greater alignment between industry and banking, with the aim of accelerating local production projects and reducing dependence on imports.
The Petroleum Derivatives Regulatory Institute (IRDP), the entity responsible for regulating the petroleum derivatives segment in Angola, will continue, according to Diamantino Azevedo, to promote measures that encourage competitiveness and the gradual increase in national lubricant production, with a view to strengthening the local industry’s share of the market supply.
Source: Forbes Lusophone Africa
