Nigerian billionaire Aliko Dangote and Kenyan President William Ruto are set to break ground on a $16 billion oil refinery in Lamu, Kenya, aimed at meeting growing demand for petroleum products across East Africa.
The refinery is planned to process 700,000 barrels of crude oil per day and is expected to be completed in 2030.
The project is intended to reduce the region’s dependence on imported refined petroleum products, lower fuel costs and reduce the amount of foreign currency spent on fuel imports.
Dangote is seeking to replicate the model of his 700,000 barrel per day refinery in Nigeria as countries including Kenya and Uganda work towards producing crude oil.
Speaking to reporters in Nairobi on Tuesday, Dangote said many African countries still rely heavily on imported petroleum products.
“When you look at East Africa, not only East Africa, most of all the 54 countries in Africa, they import petroleum products,” Dangote said.
“What we are trying to do is to make sure that we become self-sufficient in whatever we consume.”
East African governments have been offered a combined 30% stake in the refinery.
Annual demand for petroleum products in the region is estimated at between 20 million and 30 million metric tonnes, according to David Ndii, chief economic adviser to President Ruto.
A financier involved in African refinery projects said at the meeting that demand would require refining capacity of more than one million barrels per day.
The refinery will be built at Lamu, Kenya’s second deep-water seaport.
Officials say the project is also expected to support other industries, including petrochemicals and bitumen production.
The development is expected to create more than 50,000 jobs.
If completed as planned, the refinery would significantly increase East Africa’s refining capacity and reduce the region’s reliance on imported petroleum products.
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