Ship-refueling companies along Africa’s coast are experiencing increased business as vessels reroute around the Cape of Good Hope due to ongoing conflicts in the Middle East. Since late 2023, attacks on shipping in the Red Sea have led carriers to avoid the Suez Canal and Bab el-Mandeb Strait, prompting a shift in global shipping routes. Major shipping lines, including Maersk and CMA CGM, have begun rerouting their vessels to take advantage of emerging African bunkering hubs, which has spurred investment from fuel suppliers.
Existing suppliers like Monjasa have reported a rise in demand, while new entrants such as Vitol and Flex Commodities are expanding operations. The Cape Chamber of Commerce noted a 112% increase in diversions as of early March, indicating a lasting operational change. Maersk’s Asia Market head described the situation as an adaptation to a new reality, with routine bunkering now occurring at various African ports.
However, the growth of Africa’s bunkering sector faces challenges, including piracy, limited infrastructure, and supply uncertainties due to geopolitical tensions. Despite these hurdles, long-term prospects remain positive, driven by regional trade and infrastructure investments. Nonetheless, issues like tax disputes in South Africa have affected its status as a key refueling point, causing a decline in bunkering volumes.
