Dangote Proposes 650,000bpd Refinery for East Africa
Aliko Dangote plans to construct a 650,000 barrels-per-day refinery in East Africa, aiming to replicate the scale of his Lagos-based facility. The billionaire industrialist announced this intent at the “Africa We Build” summit in Nairobi on Thursday. He stated that his group is ready to proceed if regional governments provide the necessary support. The proposed project could be completed within four to five years of reaching an agreement.
This initiative aligns with ongoing talks between Kenya, Uganda, and Tanzania to establish a joint refining hub in Tanga, Tanzania. Kenyan President William Ruto confirmed that the regional bloc is in active discussions with Dangote regarding the project. The proposed hub would process crude oil from across East Africa, including supplies from Kenya, Uganda, South Sudan, and the Democratic Republic of Congo.
Dangote emphasized that Africa must transition from an importer to a producer to shield its economies from global price shocks. He noted that the Lagos refinery is already undergoing expansion to reach a capacity of 1.4 million barrels per day. Once completed, this would make the Nigerian facility the largest of its kind globally. The industrialist also intends to open ownership of his refinery ventures to African investors, promising dollar-denominated dividends.
East Africa currently imports roughly 75 per cent of its refined petroleum products, mostly from the Middle East. Recent global supply chain disruptions have heightened the urgency to bolster regional energy security. While Uganda continues to pursue a separate 60,000bpd refinery deal, regional leaders view the Dangote proposal as a transformative addition to their energy strategy.
Beyond refining, the group plans to expand its industrial reach by establishing 20 fertiliser blending plants across the continent by 2028. Dangote argued that the landscape for large-scale investment in Africa has improved significantly due to the emergence of stronger regional financial institutions. He insists that local capacity is the only viable path to long-term industrial self-sufficiency.
The move marks a major shift in Africa’s refining footprint. If realized, the Tanga refinery would drastically alter the region’s fuel supply dynamics. It promises to mitigate the impact of external geopolitical tensions on domestic pump prices. The project represents a bold effort to integrate regional infrastructure with continental industrial goals.