Dangote Unveils $17bn East African Refinery Plan, Says Regional Governments Will Own Stakes

Africa’s richest man, Aliko Dangote, has unveiled plans for a massive 650,000-barrel-per-day refinery in East Africa, a project expected to reshape the region’s energy landscape and reduce dependence on imported petroleum products.

Speaking during a business engagement in Tanzania following a meeting at the Tanzanian State House (Ikulu) in Dar es Salaam with Samia Suluhu Hassan, Dangote disclosed that governments across East Africa would be offered ownership stakes in the proposed refinery, which is estimated to cost between $15 billion and $17 billion.

“The governments of East Africa will be part owners of this refinery. It doesn’t matter where the location is,” Dangote said.

“And Tanzania, we have offered Tanzania to also be a part owner of this refinery. So the technical teams who have agreed they are going to look at where it’s best suited and wherever it’s best suited, we’ll do that refinery.”

Why Dangote Says Location Matters

The billionaire industrialist explained that the refinery’s final location would be determined after technical evaluations, stressing that refining infrastructure should not necessarily be located where crude oil is produced but where logistics and access to multiple crude sources are most efficient.

“A refinery just like in Nigeria, we didn’t build it where the oil is. We build it where you can now get a lot of different types of crude. You don’t build a refinery based on one particular crude,” he said.

According to Dangote, the refinery’s design and operational strategy will focus on long-term supply flexibility and regional distribution efficiency.

Kenya Emerging as Preferred Destination

RMNews360 Online gathered that Dangote is reportedly favouring Mombasa over Tanga for the refinery project.

According to remarks cited by the Financial Times, Dangote said Kenya’s larger economy and wider consumer base make it a more commercially strategic location for the project.

“Whatever President Ruto says is what I’ll do,” Dangote reportedly stated, referring to William Ruto.

The comments are likely to increase speculation that Kenya could emerge as the leading destination for the mega project if regional negotiations proceed smoothly.

East Africa’s Dependence on Imported Fuel

The proposed refinery comes at a critical time for East Africa, a region that currently relies heavily on imported refined petroleum products from the Middle East.

Recent global disruptions, including tensions linked to the US-Israel-Iran conflict, exposed vulnerabilities in fuel supply chains and triggered concerns over energy security and price volatility across African economies.

Industry analysts say a regional refinery of this scale could significantly alter East Africa’s downstream petroleum sector by lowering import dependence, stabilising fuel supply, and strengthening regional trade integration.

Replicating the Dangote Refinery Model

The planned refinery mirrors the scale of the Dangote Refinery in Nigeria, which has become one of the largest single-train refineries in the world and has recently begun exporting refined products internationally.

Energy experts believe the East African refinery could become a major strategic asset for the continent if completed successfully.

Dangote also hinted that construction discussions are advancing quickly, suggesting that the project could begin moving into implementation phases before the end of the year.

“So the refinery will happen and by the grace of God most likely within this year,” he said.

Regional Competition Expected to Intensify

The announcement is expected to intensify competition among East African states seeking to host one of the continent’s most ambitious energy infrastructure projects.

Beyond economic benefits, the refinery is also expected to strengthen regional energy security, create jobs, and position East Africa as a more influential player in Africa’s refining and petroleum distribution sector.

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