Africa’s richest man, Aliko Dangote, is set to break ground on a $16 billion refinery project in Kenya, describing the facility as a major step towards reducing Africa’s dependence on imported fuel.
The refinery, planned for Lamu on Kenya’s Indian Ocean coast, is expected to have a refining capacity of 700,000 barrels per day, according to Dangote.
The capacity would make the facility larger than any refinery currently operating in Europe and significantly expand Africa’s refining capacity.
Dangote, who built Africa’s largest oil refinery in Nigeria, said the Kenyan project would contribute to the continent’s efforts to become more self-sufficient in fuel production.
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The project is being developed alongside major infrastructure plans in Lamu, including the expansion of the port in the coastal city.
However, the refinery has faced opposition from a local community over land rights. A court ruling published on Monday allowed the groundbreaking to proceed while the legal case continues.
Environmental groups, including Greenpeace, have also raised concerns about the potential environmental impact of the project.
Responding to the challenges on Tuesday, Dangote dismissed the concerns, saying there was no major problem with legal cases surrounding large development projects.
“There’s actually no problem with these sort of cases… There are people who don’t want the development of Africa,” he said.
Dangote said Lamu was chosen over other locations, including Tanzania and Mombasa, because of its suitability for the project.
According to him, Lamu offers cleaner water, solid land and access to a deep-sea area.
The refinery will also include a 1,000-megawatt power facility, with Dangote saying half of the electricity generated would be supplied to Kenya’s national grid.
Africa’s fuel independence
Dangote said the refinery formed part of a broader ambition to reduce Africa’s dependence on imported petroleum products and foreign expertise.
He projected that most African countries could become self-sufficient in fuel by 2030, arguing that refining crude oil within Africa would help keep more value from the continent’s growing energy market within the region.
“By 2030, the majority of African countries will be self-sufficient in fuel. It does not matter where it is refined, but it should be in the African continent, on the soil of Africa,” he said.
Dangote also argued that African countries should develop their own technical capacity rather than relying heavily on foreign contractors for major industrial projects.
“If anybody is doing a big project going forward, you don’t have to go and bring Chinese or Indians and build it for you,” he added.
Crude supply remains a question
Questions have also been raised about where the refinery will source the crude oil required for its operations, particularly as several East African countries are only beginning to develop their oil and gas resources.
Dangote said the refinery would initially source crude from multiple international markets, including the Middle East and the United States.
He added that the facility would be positioned to process crude from Kenya, Tanzania, Mozambique and other African producers as their oil industries expand.
“Are we going to wait until Africa has one quarter of the world’s population before we start thinking of what to do? We have to start addressing that issue today,” he said.
Dangote pointed to global energy supply uncertainties, including US President Donald Trump’s threats to restrict diesel exports, as evidence of the need for Africa to strengthen its own refining capacity.
He said the planned 700,000-barrel-per-day facility should be viewed as an initial step rather than a solution to Africa’s entire energy demand.
“When you talk about 700,000 barrels per day, it’s actually small. For the region, it’s a big refinery, it’s a big investment, but it is a start-up,” Dangote said.
