...as Dangote Signals Pan-African Expansion Drive

East Africa is moving toward a major shift in its energy infrastructure with discussions underway on the establishment of a joint oil refinery at the Tanzanian port city of Tanga. The proposed facility, which would draw inspiration from Nigeria’s large-scale private refinery model, is expected to serve multiple countries in the region and reduce dependence on imported refined petroleum products.

Kenyan President William Ruto disclosed the plan during an infrastructure financing conference in Nairobi, noting that the refinery is envisioned as a shared regional asset that would process crude oil from several East African producers, including the Democratic Republic of the Congo, Kenya, South Sudan, and Uganda. The initiative reflects growing regional concern over continued reliance on imported fuels, primarily sourced from the Middle East, a dependency that has exposed the region to supply instability and price volatility, particularly during geopolitical disruptions such as tensions involving Iran.

At the centre of the proposed model is the ambition to replicate the scale and efficiency of Nigeria’s privately developed refining complex led by industrialist Aliko Dangote. The refinery, with a capacity of 650,000 barrels per day, has been widely cited as a benchmark for large-scale African refining capability and import substitution.

Dangote, who also attended the Nairobi conference, expressed readiness to replicate the Nigerian model in East Africa, provided there is strong political and regulatory backing from participating governments. He indicated that a collaborative framework involving three to four regional governments could enable the construction of a similar facility within four to five years, describing it as a realistic and achievable timeline if consensus is reached.

The proposal aligns with broader continental ambitions to industrialise Africa’s energy value chain and reduce reliance on external refining hubs. Uganda, for instance, which is preparing to commence commercial crude oil production, has already advanced its own domestic refining plans. In 2024, it entered into an agreement with UAE-based Alpha MBM Investments to develop a 60,000-barrel-per-day refinery as part of its national energy strategy.

Beyond refining, Dangote also outlined wider industrial ambitions across the continent, including plans to establish approximately 20 fertilizer blending plants by 2028 to address agricultural input shortages and strengthen food security.

He further noted that preparations are underway for the public listing of his Nigerian refinery and emphasised the importance of African participation in its ownership structure. According to him, broader continental investment would not only deepen regional economic integration but also ensure shared benefits, including dividend returns denominated in foreign currency.

The discussions in Nairobi underscore a growing trend among African economies toward energy self-sufficiency, regional integration, and large-scale private-public collaboration in critical infrastructure, particularly in refining and petrochemicals, which remain key bottlenecks in the continent’s oil and gas value chain.