Alhaji Aliko Dangote, Africa’s richest industrialist, on Thursday unveiled plans to build a 650,000 barrels-per-day refinery in East Africa in a new investment venture with potential of reducing Sub-Saharan African (SSA) countries’ continued reliance on imported fuel from global market.
Dangote, who gave this hint in his remarks during a presidential panel at the ‘Africa We Build Summit’ organised by Africa Finance Corporation (AFC) in Nairobi, said that Dangote Refinery and Petrochemicals Company, was ready to replicate the scale and model of its Lagos-based refinery if governments in the region provide the needed support.
To achieve this goal, the industrialist said the support of East African governments would be required in terms of policy guidelines and other investment incentives, and expressed confidence in the feasibility of the project, citing his experience in the 650,000bpd refinery plant in Nigeria to justify his stance.
The industrialist said: “I can give commitment to the presidents here today that if they support the refinery, we will build the identical one that we have in Nigeria, a 650,000 barrels-per-day refinery. The discussions are still early, but it will work. There is nothing that can stop it. We have done it before in Nigeria, and that is why we are taking this bold step again.
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“We have already started piling for the expansion. We are building it to a scale of 1.4 million barrels per day. It will be the largest refinery globally. That also means we will account for about 10 per cent of the entire refining capacity of the United States, alongside significant petrochemical production”, he added.
Dangote charged African leaders on the need to prioritise industrial self-sufficiency, noting that SSA government’s continued dependence on imported fuel has expose the economies to severe price shocks, citing the recent volatility in global petrochemical markets as evidence of the risks.
He clarified: “Look at what is happening today. If not for the local production of polypropylene in Nigeria, many businesses would have collapsed. Cement packaging, flour, rice, grains—everything depends on it. In just 45 days, the price jumped from about $900 per tonne to nearly $3,000 per tonne. That tells you why we must build local capacity and stop relying on imports.
“We now have strong financial institutions that are willing to support big-ticket projects, and we also have the vision to execute them. This was not the case years ago.
“There was a time in Nigeria when interest rates were as high as 44 per cent. We had to rely on international institutions like the IFC to raise about $478m for our early projects. Today, the landscape has changed significantly.
“We want all Africans to invest. This is a continental asset, and we will be paying dividends in dollars. It will deepen the market and give Africans a stake in critical infrastructure.
“My commitment is that if we agree with three or four governments in the region, we will lead the process and ensure that the refinery is built within the next four or five years”, the industrialist stressed.
Earlier, the Kenyan President, William Ruto, said that discussions were ongoing with Dangote and regional partners to establish a joint refinery in Tanga for the benefit of all nations in the subregion.
He said: “We are going to have a joint refinery in Tanga to benefit all of us because that refinery will take crude from the DRC, Kenya, South Sudan, and Uganda. We are in talks with Dangote to see how we can collaborate on building a refinery in the region. This is part of our broader strategy to strengthen energy security and reduce dependence on imported petroleum products.”
Ruto explained that the project would be supported by a pipeline linking Kenya’s coastal city of Mombasa to Tanga, ensuring a steady supply of crude to the facility.
Currently, available data shows that about 75 per cent of refined petroleum products consumed in East and Southern Africa are imported mainly from the Middle East countries.
As the Kenyan President has disclosed, Kenya, Uganda, and Tanzania are intensifying their talks to establish a joint refining hub in the Tanzanian port city of Tanga to process crude from across the region, including supplies from the Democratic Republic of Congo and South Sudan.
Alhaji Aliko Dangote, Africa’s richest industrialist, on Thursday unveiled plans to build a 650,000 barrels-per-day refinery in East Africa in a new investment venture with potential of reducing Sub-Saharan African (SSA) countries’ continued reliance on imported fuel from global market.
Dangote, who gave this hint in his remarks during a presidential panel at the ‘Africa We Build Summit’ organised by Africa Finance Corporation (AFC) in Nairobi, said that Dangote Refinery and Petrochemicals Company, was ready to replicate the scale and model of its Lagos-based refinery if governments in the region provide the needed support.
To achieve this goal, the industrialist said the support of East African governments would be required in terms of policy guidelines and other investment incentives, and expressed confidence in the feasibility of the project, citing his experience in the 650,000bpd refinery plant in Nigeria to justify his stance.
The industrialist said: “I can give commitment to the presidents here today that if they support the refinery, we will build the identical one that we have in Nigeria, a 650,000 barrels-per-day refinery. The discussions are still early, but it will work. There is nothing that can stop it. We have done it before in Nigeria, and that is why we are taking this bold step again.
“We have already started piling for the expansion. We are building it to a scale of 1.4 million barrels per day. It will be the largest refinery globally. That also means we will account for about 10 per cent of the entire refining capacity of the United States, alongside significant petrochemical production”, he added.
Dangote charged African leaders on the need to prioritise industrial self-sufficiency, noting that SSA government’s continued dependence on imported fuel has expose the economies to severe price shocks, citing the recent volatility in global petrochemical markets as evidence of the risks.
He clarified: “Look at what is happening today. If not for the local production of polypropylene in Nigeria, many businesses would have collapsed. Cement packaging, flour, rice, grains—everything depends on it. In just 45 days, the price jumped from about $900 per tonne to nearly $3,000 per tonne. That tells you why we must build local capacity and stop relying on imports.
“We now have strong financial institutions that are willing to support big-ticket projects, and we also have the vision to execute them. This was not the case years ago.
“There was a time in Nigeria when interest rates were as high as 44 per cent. We had to rely on international institutions like the IFC to raise about $478m for our early projects. Today, the landscape has changed significantly.
“We want all Africans to invest. This is a continental asset, and we will be paying dividends in dollars. It will deepen the market and give Africans a stake in critical infrastructure.
“My commitment is that if we agree with three or four governments in the region, we will lead the process and ensure that the refinery is built within the next four or five years”, the industrialist stressed.
Earlier, the Kenyan President, William Ruto, said that discussions were ongoing with Dangote and regional partners to establish a joint refinery in Tanga for the benefit of all nations in the subregion.
He said: “We are going to have a joint refinery in Tanga to benefit all of us because that refinery will take crude from the DRC, Kenya, South Sudan, and Uganda. We are in talks with Dangote to see how we can collaborate on building a refinery in the region. This is part of our broader strategy to strengthen energy security and reduce dependence on imported petroleum products.”
Ruto explained that the project would be supported by a pipeline linking Kenya’s coastal city of Mombasa to Tanga, ensuring a steady supply of crude to the facility.
Currently, available data shows that about 75 per cent of refined petroleum products consumed in East and Southern Africa are imported mainly from the Middle East countries.
As the Kenyan President has disclosed, Kenya, Uganda, and Tanzania are intensifying their talks to establish a joint refining hub in the Tanzanian port city of Tanga to process crude from across the region, including supplies from the Democratic Republic of Congo and South Sudan.
organised by Africa Finance Corporation (AFC) in Nairobi, said that Dangote Refinery and Petrochemicals Company, was ready to replicate the scale and model of its Lagos-based refinery if governments in the region provide the needed support.
To achieve this goal, the industrialist said the support of East African governments would be required in terms of policy guidelines and other investment incentives, and expressed confidence in the feasibility of the project, citing his experience in the 650,000bpd refinery plant in Nigeria to justify his stance.
The industrialist said: “I can give commitment to the presidents here today that if they support the refinery, we will build the identical one that we have in Nigeria, a 650,000 barrels-per-day refinery. The discussions are still early, but it will work. There is nothing that can stop it. We have done it before in Nigeria, and that is why we are taking this bold step again.
“We have already started piling for the expansion. We are building it to a scale of 1.4 million barrels per day. It will be the largest refinery globally. That also means we will account for about 10 per cent of the entire refining capacity of the United States, alongside significant petrochemical production”, he added.
Dangote charged African leaders on the need to prioritise industrial self-sufficiency, noting that SSA government’s continued dependence on imported fuel has expose the economies to severe price shocks, citing the recent volatility in global petrochemical markets as evidence of the risks.
He clarified: “Look at what is happening today. If not for the local production of polypropylene in Nigeria, many businesses would have collapsed. Cement packaging, flour, rice, grains—everything depends on it. In just 45 days, the price jumped from about $900 per tonne to nearly $3,000 per tonne. That tells you why we must build local capacity and stop relying on imports.
“We now have strong financial institutions that are willing to support big-ticket projects, and we also have the vision to execute them. This was not the case years ago.
“There was a time in Nigeria when interest rates were as high as 44 per cent. We had to rely on international institutions like the IFC to raise about $478m for our early projects. Today, the landscape has changed significantly.
“We want all Africans to invest. This is a continental asset, and we will be paying dividends in dollars. It will deepen the market and give Africans a stake in critical infrastructure.
“My commitment is that if we agree with three or four governments in the region, we will lead the process and ensure that the refinery is built within the next four or five years”, the industrialist stressed.
Earlier, the Kenyan President, William Ruto, said that discussions were ongoing with Dangote and regional partners to establish a joint refinery in Tanga for the benefit of all nations in the subregion.
He said: “We are going to have a joint refinery in Tanga to benefit all of us because that refinery will take crude from the DRC, Kenya, South Sudan, and Uganda. We are in talks with Dangote to see how we can collaborate on building a refinery in the region. This is part of our broader strategy to strengthen energy security and reduce dependence on imported petroleum products.”
Ruto explained that the project would be supported by a pipeline linking Kenya’s coastal city of Mombasa to Tanga, ensuring a steady supply of crude to the facility.
Currently, available data shows that about 75 per cent of refined petroleum products consumed in East and Southern Africa are imported mainly from the Middle East countries.
As the Kenyan President has disclosed, Kenya, Uganda, and Tanzania are intensifying their talks to establish a joint refining hub in the Tanzanian port city of Tanga to process crude from across the region, including supplies from the Democratic Republic of Congo and South Sudan.
