KEY POINTS
- East African leaders are planning a joint refinery in Tanzania to process crude from several regional countries
- Aliko Dangote has offered to replicate his Nigerian refinery model and lead construction if governments agree
- The initiative aims to reduce fuel import dependence, improve energy security, and stabilise regional oil supply
East African countries are exploring plans to jointly develop a large oil refinery at the port of Tanga in Tanzania, in a move aimed at reducing dependence on imported refined petroleum products.
The proposal was disclosed by Kenyan President William Ruto during an infrastructure financing conference in Nairobi, where he said the facility would be modelled after Nigeria’s Dangote Refinery and designed to serve multiple countries in the region.
According to Ruto, the planned refinery would process crude oil sourced from Kenya, Uganda, South Sudan, and the Democratic Republic of the Congo, creating a shared regional supply system for refined petroleum products.
He noted that East Africa currently relies entirely on imported refined fuel, mostly from the Middle East, a situation that exposes the region to supply disruptions and price volatility, particularly during global geopolitical tensions.
Dangote signals investment interest
Africa’s richest man, Aliko Dangote, who also attended the conference, expressed readiness to replicate his 650,000-barrel-per-day refinery model in East Africa if regional governments agree on a coordinated plan.
Dangote said he would lead the project if governments in the region reach consensus, adding that construction could be completed within four to five years once approvals and commitments are secured.
He also encouraged African participation in the project, stressing that the refinery should be owned and supported across the continent, not just by individual stakeholders. He added that investors could benefit from returns in foreign currency through dividend payouts.
Uganda, which is preparing to begin commercial crude oil production, has also announced plans to develop its own refinery. In 2024, it signed an agreement with a United Arab Emirates-based investment firm to construct a 60,000-barrel-per-day facility.
The country’s move reflects broader regional ambitions to increase local refining capacity and reduce reliance on imported petroleum products.
Beyond refining, Dangote also revealed plans to establish about 20 fertilizer blending plants across Africa by 2028, aimed at improving agricultural productivity and reducing import dependency on the continent.
