Dangote unveils plan for 650,000bpd East Africa refinery expansion

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Key points

• Aliko Dangote plans a 650,000 barrels-per-day refinery in East Africa.
• Project aims to reduce Africa’s dependence on imported fuel and boost energy security.
• Talks underway with regional governments as part of a broader industrial expansion strategy.

Main story

Africa’s richest man, Aliko Dangote, has announced plans to build a 650,000 barrels-per-day refinery in East Africa, marking a significant expansion of his refining footprint beyond Nigeria.

Dangote disclosed this during a presidential panel at the Africa We Build Summit organised by the Africa Finance Corporation, stating that his group is prepared to replicate the scale and model of its Lagos-based refinery if it receives adequate government support.

The proposed refinery aligns with ongoing regional discussions involving Kenya, Uganda, and Tanzania to establish a joint refining hub in Tanga, Tanzania. The facility is expected to process crude oil sourced from across the region, including the Democratic Republic of Congo and South Sudan.

Expressing confidence in the project, Dangote said his experience delivering the 650,000bpd refinery in Lagos provides a strong foundation for replication. He added that the East African refinery could be completed within four to five years once agreements are finalised.

He also revealed that expansion works have already commenced in Nigeria to scale refining capacity to 1.4 million barrels per day, positioning the facility among the largest globally.

The issues

Africa continues to rely heavily on imported refined petroleum products, with about 75 per cent of demand in East and Southern Africa met through imports. This dependence exposes economies to global price volatility, supply disruptions, and geopolitical risks.

What’s being said

Dangote stressed the need for industrial self-sufficiency, warning that reliance on imports leaves African economies vulnerable to shocks. He cited recent volatility in petrochemical markets as evidence, noting sharp price increases in key inputs such as polypropylene.

He added that Africa now has stronger financial institutions capable of supporting large-scale industrial projects, unlike in the past when developers relied heavily on international funding sources.

Dangote also disclosed plans to open up ownership of the refinery to African investors, offering dollar-denominated returns to deepen participation in critical infrastructure development.

Meanwhile, William Ruto confirmed ongoing discussions with Dangote and regional partners, stating that the proposed refinery in Tanga would enhance energy security and reduce dependence on imports.

What’s next

Negotiations between Dangote Group and East African governments are expected to continue, with agreements required to unlock project execution. Supporting infrastructure, including pipeline connections, will also be critical to the refinery’s success.

In parallel, Uganda is advancing its own refining plans, while regional stakeholders push for integrated energy solutions.

Bottom line

Dangote’s proposed East African refinery signals a bold step toward transforming Africa’s energy landscape, but its success will depend on strong government backing, regional collaboration, and sustained investment.