Dangote eyes East Africa refinery expansion

Aliko Dangote, Africa's wealthiest individual and a titan of industry, has signaled a monumental ambition to expand his refining empire into East Africa. This bold move, announced at the Africa We Build Summit in Nairobi, aims to replicate the success of his massive refinery in Nigeria, potentially reshaping the continent's fuel supply landscape. Dangote's vision hinges on collaboration with East African governments, seeking their support to establish a new 650,000 barrels-per-day facility.

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I can give commitment to the presidents here today that if they support the refinery, we will build the identical one that we have in Nigeria, a 650,000 barrels-per-day refinery.

This initiative arrives at a critical juncture as Kenya, Uganda, and Tanzania are already in discussions about a joint refining hub. Dangote's commitment to building an identical refinery to his Nigerian counterpart underscores his confidence in the region's potential and his proven track record. He expressed a strong belief that the project is feasible and unstoppable, drawing from his experience in delivering the Lagos-based refinery.

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The discussions are still early, but it will work. There is nothing that can stop it. We have done it before in Nigeria, and that is why we are taking this bold step again.

Beyond the immediate expansion, Dangote is also scaling up his Nigerian operations to a staggering 1.4 million barrels per day, positioning it to become the largest refinery globally. This expansion, he noted, will significantly contribute to global refining capacity and petrochemical production. The billionaire industrialist passionately advocated for Africa's industrial self-sufficiency, warning against the perils of import dependency, which exposes economies to severe price volatility, as evidenced by recent petrochemical market fluctuations.

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We have already started piling for the expansion. We are building it to a scale of 1.4 million barrels per day. It will be the largest refinery globally. That also means we will account for about 10 per cent of the entire refining capacity of the United States, alongside significant petrochemical production.

Dangote's vision extends beyond mere capacity building; he sees this as a catalyst for unlocking substantial investment opportunities across the continent. With strong financial institutions now willing to back large-scale projects, the stage is set for Africa to take a significant leap towards economic independence and robust industrial growth. This is not just about fuel; it's about building a self-reliant Africa.

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Look at what is happening today. If not for the local production of polypropylene in Nigeria, many businesses would have collapsed. Cement packaging, flour, rice, grains—everything depends on it. In just 45 days, the price jumped from about $900 per tonne to nearly $3,000 per tonne. That tells you why we must build local capacity and stop relying on imports.