Africa’s richest man, Aliko Dangote, is in discussions with Kenya and Uganda over plans to build a Nigeria-style oil refinery in Tanzania, as the East African countries move to reduce reliance on imported petroleum products.
The plan, disclosed by the President of Kenya, William Ruto, at an Africa Finance Corporation summit in Nairobi on Thursday, involves collaboration between Kenya, Uganda, and Tanzania.
He noted that the proposed project will include a pipeline linking the Kenyan port city of Mombasa to Tanga, where the refinery is expected to be located.
“Kenyan President William Ruto said his government and neighboring Uganda are in talks with Africa’s richest man to build a crude oil refinery in Tanzania, as the war in Iran exposes the continent’s over-reliance on fuel imports from the Middle East,” the source read in part.
The proposed facility is planned to process crude oil from countries including South Sudan and the Democratic Republic of Congo.
What they are saying
Ruto said the discussions with Dangote are part of broader efforts to strengthen energy security within East Africa.
“We are in talks with Dangote to see how we can collaborate on building a refinery in the region,” he said at the summit.
The Kenyan president added that the project would support the processing of crude resources within Africa rather than exporting them in raw form.
Meanwhile, the proposed pipeline between Mombasa and Tanga is expected to serve as a key supply route for crude feedstock into the refinery, connecting inland producers to coastal infrastructure.
More insights
The discussions come against the backdrop of disruptions to fuel supply chains linked to tensions involving Iran.
Several countries on the continent rely heavily on refined fuel imports, particularly from the Middle East, and Ruto said recent supply uncertainties have exposed the risks of that dependence.
The Kenyan president said strengthening refining capacity within the region would help reduce exposure to external supply shocks.
According to energy consultancy CITAC, about 75% of refined fuel imported by countries in East and Southern Africa is sourced from the Middle East, underlining the scale of the region’s dependence despite having access to crude oil resources.
What you should know
The talks come after the development of the Dangote Refinery, which began operations in 2024 with a capacity of 650,000 barrels per day.
The facility was built to supply refined petroleum products within Nigeria and export to other markets.
According to Ruto, the proposed project will involve multiple countries, with crude supply expected from producers such as Uganda, South Sudan, and the Democratic Republic of Congo.
He added that a pipeline linking Mombasa to Tanga will be developed to support crude supply to the refinery.
