NAIROBI, Kenya — Nigerian billionaire Aliko Dangote says plans to construct a proposed 700,000-barrel-per-day refinery in Kenya have advanced significantly, with groundbreaking expected by October as the project moves closer to construction.
Dangote said the refinery is intended to serve not only Kenya but the wider East African market, potentially supplying refined petroleum products to countries stretching as far as Egypt.
Speaking during an interview with the BBC, Dangote said discussions with Kenya had progressed and that construction would begin shortly after the groundbreaking ceremony.
“The plans have actually gone very far with Kenya, because what we are trying to do really is to try and make sure that most African countries, we make them self-sufficient in their own energy needs,” he said.
“By October, we’ll be doing ground-breaking. Once we break ground, we’ll start the construction very soon.”
The proposed facility, which Dangote referred to as an East African Refinery, is expected to take less than four years to complete once construction begins.
“That’s why we’re calling it East African Refinery, you know, so that it can serve a lot of countries up to even Egypt,” he said.
Refinery Cost Revised to $16 Billion
Dangote said the estimated cost of the project has been revised downward from an initial projection of about $17 billion to between $15.5 billion and $16 billion.
He attributed the reduction partly to lower financing costs and experience gained from constructing the Dangote refinery in Lagos, Nigeria.
“This one will be faster, so in terms of financing costs, it will be less,” he said.
The project is expected to be financed through a combination of equity and debt, with equity accounting for about 30 per cent of the funding and debt providing the remaining 70 per cent.
Dangote said the company does not expect significant difficulties in raising the required capital.
Boost to Regional Energy Security
The proposed refinery would represent a major investment in East Africa’s petroleum infrastructure at a time when countries in the region remain heavily dependent on imported refined fuel.
Dangote said the facility would help African countries become more self-sufficient in meeting their energy requirements while reducing exposure to international supply disruptions and import costs.
“It’s going to have a massive impact, really, and also it guarantees the countries getting their own products,” he said.
Kenya and other East African economies rely heavily on imported petroleum products to power transport, industry and households. A large regional refinery could therefore reshape petroleum supply chains and reduce dependence on refined products shipped from outside the continent.
The project could also create opportunities in construction, logistics, engineering, energy services and other sectors if it proceeds as planned.
Dangote Calls for Greater African Production
Dangote said the proposed refinery forms part of a broader effort to strengthen Africa’s capacity to produce energy, fertiliser and other essential commodities locally.
He urged African countries to take greater responsibility for driving economic growth and exploiting the continent’s resources.
“We Africans, we must make sure that we lead the prospects that you have, the opportunities that you have. Nobody, and I repeat, nobody will come and drive it for us,” he said.
He also called for stronger implementation of the African Continental Free Trade Area (AfCFTA), arguing that increased trade between African countries would help boost production, create jobs and strengthen economic self-sufficiency.
“You have one quarter of the world’s population, and you are not producing anything. If you are not productive, how do you create prosperity?” Dangote said.
