Human Capital: The missing link in Africa’s energy security and industrialisation

KAMPALA, April 14, 2026 — Across Africa, governments and private investors are fast-tracking plans to construct and modernise refineries, gas processing facilities, petrochemical plants, pipelines, and storage infrastructure. These efforts are aimed at strengthening industrialisation and reducing dependence on imported fuels and finished products.

However, according to Anibor Kragha, Executive Secretary of the African Refiners and Distributors Association [ARDA], the continent faces a critical shortage of skilled professionals needed to operate and sustain these investments without relying heavily on expatriates.

“Africa’s greatest vulnerability in achieving energy security is not a lack of capital, technology, or natural resources, but the absence of a well-developed talent pipeline capable of efficiently managing industrial assets. As infrastructure expands, equal attention must be given to building the human capacity required to run it effectively over the long term,” he notes

Human capital as an investment risk factor

Energy investments, particularly in the downstream sector, are designed to deliver returns over long periods, often spanning 10 to 20 years or more. These projects demand highly specialised expertise in engineering, plant operations, safety, environmental compliance, and digital systems. However, the professionals who initiate and manage such projects may not remain in these roles long enough, creating a gap in continuity.

This challenge is especially visible in the refining sector. Despite holding about eight per cent of the world’s oil reserves, Africa still depends heavily on imported refined petroleum products. Refinery performance across the continent lags behind global standards, with utilisation rates averaging about 40 per cent compared to over 70 per cent globally. Operational shutdowns are also more frequent.

While ageing infrastructure and financial constraints are often cited, the shortage of skilled personnel remains a less visible but critical factor. Refinery operations require advanced capabilities in process optimisation, equipment maintenance, safety management, and digital control systems. Without these competencies, efficiency drops and operational risks rise.

“For investors, this presents a significant concern. Long-term energy projects depend on stable and efficient operations. Where there is no clear strategy for developing and sustaining local talent, investment risks increase. In this context, human capital becomes not just a labour issue, but a key determinant of investment confidence,” Kragha adds.

Lessons from the COVID-19 pandemic and local capacity

The COVID-19 pandemic exposed the risks of overdependence on foreign expertise. Travel restrictions disrupted supply chains and prevented the movement of technical specialists, causing delays and shutdowns in several energy projects across Africa.

“Facilities that relied heavily on expatriate workers struggled to maintain operations. In contrast, those with strong local technical capacity proved more resilient, continuing to function despite global disruptions,” he says.

Although international expertise remains important for knowledge transfer, long-term sustainability depends on building a workforce of local professionals who understand both the technical requirements and the regional context.

Kragha emphasises that this is not merely about localisation, but a strategic necessity for achieving energy independence, economic sovereignty, and global competitiveness.

Youthful population and the skills paradox

Africa’s population presents a major opportunity, with nearly 60 per cent under the age of 25. This youthful demographic has the potential to drive the continent’s industrial transformation if equipped with the right skills.

The global energy transition is expected to generate millions of jobs in energy production, infrastructure, and digital energy systems. Africa stands to benefit significantly if its education and training systems are aligned with industry demands.

However, a paradox persists. Despite the large youth population, companies struggle to find workers with the specialised skills required in technical fields. Several factors contribute to this gap. Academic programmes often lack practical, industry-relevant training, leaving graduates unprepared for real-world operations. There is also a shortage of expertise in areas such as advanced process control, equipment reliability, and plant maintenance. In addition, brain drain continues to draw skilled professionals to more competitive markets.

Weak coordination between universities, industry, and government further compounds the problem, resulting in fragmented training initiatives that fail to meet labour market needs. The outcome is a mismatch where employers cannot find qualified workers, while graduates remain unemployed.

Artificial intelligence and the future workforce

The growing use of Artificial Intelligence and digital systems is reshaping the energy sector. Modern facilities increasingly rely on real-time monitoring, predictive maintenance, and data-driven decision-making, requiring professionals who combine engineering expertise with digital skills.

AI also offers opportunities to improve training through personalised learning platforms and tools that identify skill gaps and forecast workforce needs. However, it introduces additional energy demands, as data centres and digital infrastructure consume significant power and contribute to carbon emissions.

This evolving landscape calls for interdisciplinary training that integrates energy engineering, data analytics, and environmental sustainability to prepare a workforce capable of navigating both industrial and digital challenges.

ARDA’s role in driving skills development across Africa

Addressing Africa’s skills gap requires coordinated efforts between governments, industry players, and academic institutions. ARDA has been at the forefront of promoting human capital development within the downstream energy sector.

Through policy engagement, technical forums, and industry dialogues, ARDA works to align academic training with industry needs. Its platforms, including technical workgroups and the annual ARDA Week conference, bring together regulators, operators, and researchers to share knowledge and best practices.

Initiatives such as the ARDA Training School in Abidjan are helping to build the technical expertise needed to manage Africa’s expanding energy infrastructure. At the same time, companies are encouraged to partner with universities to design practical training programmes, offer field exposure, and utilise digital simulation tools for skills development.

Continuous professional development, structured mentorship, and clear career pathways are essential to building a sustainable workforce. Investors are also urged to incorporate talent development into project planning, ensuring that infrastructure investments include provisions for local capacity building.

Corporate leaders must recognise that developing skilled personnel is just as important as securing financing or technology. Organisations that invest in talent pipelines will be better positioned to achieve operational efficiency and long-term resilience.

Ultimately, the objective is to establish a continent-wide network of technical excellence capable of producing globally competitive professionals.

Kragha warns that without sustained investment in human capital, Africa risks developing infrastructure that it cannot effectively operate or expand. However, with the right systems in place, the continent can turn its youthful population into a powerful driver of industrial growth.

“Industries do not drive people – people drive industries, and Africa’s industrial future depends on getting it right,” he concludes.

World Bank report

According to the World Bank, Sub-Saharan Africa has not experienced premature deindustrialisation. Manufacturing employment, a key indicator of industrial growth, has increased alongside rising income levels, reflecting patterns seen in other developing regions.

The formal manufacturing sector has expanded in recent years, with new and young firms driving job creation, supported by relatively low wages. However, as wages rise, the potential for continued job growth based on low labour costs is narrowing.

At the same time, the contribution of manufacturing value-added to GDP has remained flat or declined since the 1990s, with no strong signs of recovery. This suggests limited productivity growth within the sector and helps explain the slower pace of structural transformation.

The report also highlights the role of global value chains [GVCs] in boosting job creation and productivity. African countries have benefited from participation in these networks, particularly through forward integration, where exported goods serve as inputs for production in other countries. However, this participation is largely concentrated in primary commodities and low-skill activities, reflecting the need for higher-value industrial capabilities.

https://thecooperator.news/uganda-and-uk-partner-to-hold-joint-forum-on-agro-industrialisation/

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