Dangote Plans 650,000BPD East Africa Refinery Expansion

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Africa’s richest man, Aliko Dangote, has unveiled plans to build a 650,000 barrels-per-day refinery in East Africa, marking a bold move to expand his industrial footprint beyond Nigeria and reduce the continent’s reliance on imported petroleum products.

Dangote made the disclosure during a presidential panel at the Africa We Build Summit in Nairobi, stating that his company is prepared to replicate the scale and operational model of its Lagos-based refinery, provided governments in the region offer the necessary support.

The proposed project comes amid ongoing discussions among Kenya, Uganda, and Tanzania to establish a joint refining hub in Tanga, a coastal city expected to process crude oil from across the region, including supplies from the Democratic Republic of Congo and South Sudan.

Expressing confidence in the initiative, Dangote said his experience in delivering Nigeria’s 650,000bpd refinery positions him to successfully execute a similar project in East Africa.

“We have done it before in Nigeria, and that is why we are taking this bold step again,” he said, adding that the refinery could be delivered within four to five years once agreements are finalised.

Beyond the East African plan, Dangote revealed that expansion works have already begun on his Nigerian refinery to scale capacity up to 1.4 million barrels per day—potentially making it the largest refinery in the world and accounting for a significant share of global refining output.

He stressed the urgency for Africa to prioritise industrial self-sufficiency, warning that dependence on imports leaves economies vulnerable to global price shocks. He cited recent spikes in petrochemical prices as evidence of the risks facing the continent.

According to him, the new refinery project would not only strengthen Africa’s refining capacity but also unlock major investment opportunities. He disclosed plans to open ownership of the refinery business to African investors, offering dollar-denominated returns.

Meanwhile, William Ruto confirmed that talks are already underway with Dangote and regional partners to develop a joint refinery in Tanga as part of efforts to enhance energy security and cut fuel imports.

Industry data indicates that about 75 per cent of refined petroleum products consumed in East and Southern Africa are imported, exposing the region to supply disruptions and price volatility.

Dangote’s expansion strategy builds on the success of his Lagos refinery, which began operations in 2024 and is widely regarded as Africa’s largest. The facility is expected to play a key role in transforming the continent into a major refining hub.

In addition to refining, Dangote also announced plans to establish about 20 fertiliser blending plants across Africa by 2028, further deepening his investment in the continent’s industrial value chain.

Experts say the proposed East African refinery, if realised, could significantly reshape Africa’s energy landscape by boosting local production, reducing import dependence, and strengthening regional economic resilience.

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