Dangote Group Announces Plans for Large-Scale Refinery in East Africa Amid Continental Push for Energy Self-Sufficiency
Introduction
Aliko Dangote, Africa''s wealthiest person, announced plans to build a crude oil refinery in East Africa with a capacity similar to his 650,000 barrels-per-day facility in Nigeria. He made the announcement during a presidential panel at the ''Africa We Build'' summit in Nairobi, attended by Kenyan President William Ruto and Ugandan President Yoweri Museveni. Dangote stated that the project would start within four to five years if regional governments provide consistent policies and cooperation. The initiative is part of a broader effort to reduce Africa''s dependence on exporting raw materials and to improve energy security, especially following global supply disruptions caused by the closure of the Strait of Hormuz.
Main Body
Dangote emphasized that the proposed refinery would be as large as his Nigerian plant and would serve several East African countries, including Tanzania, Kenya, Uganda, South Sudan, and the Democratic Republic of Congo. Crude oil for the facility would come from across the region, supported by shared pipeline infrastructure to improve efficiency and reduce costs. He noted that his group had already started construction work for a separate 1.4 million barrels-per-day refinery in Nigeria, which would become the world''s largest and account for 10% of U.S. refining capacity. Dangote also repeated his criticism of Africa''s long-term practice of exporting raw materials and importing finished products, describing it as a system that makes the continent''s 1.4 billion people poorer. He called for free movement without visas across Africa, arguing that current restrictions harm trade and investment. President Ruto confirmed that discussions were taking place for a regional refinery model that shares resources and demand across borders, avoiding the need to build duplicate infrastructure. He stated that Africa has the raw materials, market, capital, and business leaders to carry out such projects. President Museveni reinforced the need to move from exporting raw materials to finished products, saying that exporting unprocessed resources when the ability to add value exists is ''almost criminal.'' The Dangote refinery in Nigeria has already become a key player in the domestic energy market since starting operations in 2024. According to the Airline Operators of Nigeria, the facility supplies over 95% of the Jet A1 fuel used in the country and exported about 1.1 billion litres of aviation fuel to Europe between March and April 2025. However, airline operators reported that despite steady supply from the refinery, Jet A1 prices had risen by up to 300% due to an alleged fake shortage created by downstream marketers. The Director General of the Raw Materials Research and Development Council, Professor Nnanyelugo Ike Muonso, stated that the $20 billion refinery shows the value of domestic processing, noting that Nigeria previously exported crude oil and imported refined products with little economic benefit. He estimated that Nigeria loses $29 billion each year from exporting raw materials without processing them. Bilateral trade between South Africa and Nigeria reached $2.16 billion in 2025, with South Africa recording a $1.22 billion deficit driven by crude oil imports. Calvin Phume, Director of Africa Bilateral Economic Relations at South Africa''s Department of Trade, Industry and Competition, stated that the Dangote refinery has become a main source of refined petroleum products for South Africa, especially amid geopolitical tensions in the Middle East. He noted that trade under the African Continental Free Trade Area had increased, though South Africa''s exports under the agreement were more favorable to it. Deputy Minister of International Relations and Cooperation Thandi Moraka described the Dangote refinery as a strategic asset that improves Africa''s energy security and provides protection from global supply disruptions. Dangote also announced that his group plans to invest $40 billion across sectors including refining, petrochemicals, fertilizer, and manufacturing by 2030. He stated that no meaningful investment would happen in Africa without local leadership and domestic commitment, criticizing past over-dependence on foreign investors whose priorities were not focused on building local economies. The Africa Finance Corporation''s CEO, Samaila Zubairu, noted that the continent holds trillions of dollars in pension and insurance assets that could be directed toward infrastructure instead of investments with low returns.
Conclusion
The proposed East African refinery, if built, would represent an important step toward regional industrial integration and energy independence. Its success depends on continued policy cooperation among participating governments and the use of domestic capital. Dangote''s existing refinery in Nigeria has already changed the country''s energy landscape, reduced dependence on imported fuels, and made Africa a growing player in the global downstream oil market.