Africa’s richest man, Aliko Dangote, has unveiled plans to establish a 650,000 barrels-per-day oil refinery in East Africa, replicating the scale of his flagship facility in Nigeria, as part of a broader strategy to accelerate industrial development across the continent.
Dangote disclosed the proposal on Thursday at a high-level summit in Nairobi, where African leaders, financiers, and industry stakeholders gathered to deliberate on the continent’s energy and infrastructure demands.
Addressing William Ruto and Yoweri Museveni, Dangote said the refinery project would require firm government support and consistent policies to materialise. He added that his group is targeting a $40 billion investment across multiple sectors between now and 2030.
He pledged that the refinery would be built if there is adequate backing from host governments, noting that it would match the 650,000 bpd capacity of his Lagos-based facility. While describing the project as still in its early stages, Dangote expressed strong confidence in its viability, stating that there are no significant barriers to its execution.
Dangote used the platform to advocate for a shift away from Africa’s dependence on imports, stressing the need for the continent to build domestic industrial capacity. According to him, exporting raw materials deprives Africa of job opportunities, while importing finished goods transfers economic value abroad.
He argued that sectors such as refining, fertiliser production, and petrochemicals are central to driving industrialisation, boosting employment, and strengthening economic resilience. The proposed East African refinery forms part of his group’s wider investment agenda aimed at transforming key industries across the continent.
The announcement comes against the backdrop of projections by the Africa Finance Corporation, which warned that Africa could face a fuel shortfall of up to 86 million tonnes by 2040. The report indicates that the continent currently imports more than 70 percent of its refined petroleum products and spends approximately $230 billion annually on essential imports, including fuel, food, and industrial goods.
It further projects that fuel import demand will rise from 74 million tonnes in 2023 to 86 million tonnes by 2040—equivalent to nearly three refineries of the scale of Dangote’s Lagos plant.
Echoing the call for structural change, President Ruto emphasised the need for Africa to rethink its economic model, warning that reliance on external capital focused on raw material extraction could undermine the continent’s long-term ambitions. He reiterated that exporting raw materials while importing finished goods limits Africa’s economic growth potential.
Discussions at the summit also highlighted the fragility of Africa’s energy systems, including vulnerability to global supply disruptions and persistent infrastructure gaps.
Beyond refining, Dangote pointed to ongoing efforts to expand fertiliser production and petrochemical capacity across the continent, including plans to increase urea output and develop blending plants in underserved regions.
He maintained that with the right policy environment and government collaboration, Africa can achieve self-sufficiency in critical industrial sectors.
The proposed refinery, if realised, is expected to play a significant role in addressing Africa’s projected fuel deficit while advancing the continent’s long-term goal of economic independence and industrial growth.
Dangote Plans 650,000 bpd Refinery in East Africa, Targets $40bn Investment Drive by 2030
