African billionaire says project modelled after Nigeria’s Dangote Refinery could transform regional energy supply and drive industrial growth

By ifeoma Onyekachi

Africa’s richest man and President/CEO of the Dangote Group, Aliko Dangote, has announced plans to partner with East African nations to build a large-scale oil refinery in Tanzania, in a move that could reshape the region’s energy landscape.

Dangote made the disclosure at an infrastructure financing conference in Nairobi, where he spoke alongside regional leaders including William Ruto and Yoweri Museveni. He said the proposed refinery would mirror the scale and structure of the Dangote Refinery in Nigeria, which has a processing capacity of 650,000 barrels per day.

“If they will support the refinery, we’ll build the identical one that we have in Nigeria,” Dangote said, noting that discussions with Kenya and Uganda are ongoing and dependent on political support.

The industrialist expressed strong confidence in the project’s viability, declaring, “It will work. There’s nothing that can stop it,” a remark that drew applause from conference participants.

Beyond the East African plan, Dangote revealed that his broader refining ambitions could scale up to 1.4 million barrels per day, potentially making it one of the largest refinery complexes in the world. He said such capacity would rival global benchmarks, accounting for roughly 10 per cent of total refining output in the United States.

He added that the refinery would be integrated with petrochemical production, particularly polypropylene, to support industries ranging from cement packaging to food processing. According to him, boosting local production is key to shielding African economies from global price shocks.

Dangote cited recent volatility in polypropylene prices rising from $900 to $3,000 per tonne within weeks as an example of the risks associated with import dependence.

Framing the project as part of a broader push for industrial self-sufficiency, he urged African countries to prioritise local value addition. He also commended Uganda’s stance on restricting raw material exports, describing it as a policy that encourages domestic industrialisation.

Reflecting on past challenges, Dangote recalled securing a $478 million international loan in the early 2000s under tough conditions, noting that it was repaid ahead of schedule despite initial skepticism from lenders.

“It is possible. Africans can do it. Let us not be scared,” he said.

If realised, the proposed Tanzania refinery would mark a significant step toward regional energy integration, positioning East Africa as a new hub in Africa’s growing petrochemical industry.