Dangote Announces Plans to Build Major Oil Refinery in East Africa

Aliko Dangote, Africa’s wealthiest individual and the founder of Dangote Group, has announced plans to build a new oil refinery in East Africa. This new project aims to address the region’s heavy reliance on imported refined petroleum products and strengthen its energy security. Dangote made this commitment during the Africa We Build Summit 2026, which was held in Nairobi, Kenya, where he spoke to an audience of regional leaders, industry experts, and investors.

In his address, according to Dangote, the proposed refinery will be built on a similar scale in East Africa, ideally situated to serve multiple countries in the region. The location being considered for the refinery is Tanga, Tanzania, a port city that has the potential to provide easy access to crude oil supplies from neighbouring countries such as Uganda, South Sudan, and the Democratic Republic of Congo.

Dangote confirmed that he would move forward with the project provided that East African governments align on favourable policies and offer their support, both financially and logistically. “I can give commitment to the two presidents that were here — if they will support the refinery, we’ll build the identical one that we have in Nigeria,” said Dangote, referring to Kenya’s President William Ruto and Uganda’s President Yoweri Museveni, who were present at the summit.

Addressing the Region’s Energy Shortfall

Currently, East African countries rely heavily on imports for their refined fuel needs, creating a vulnerable position for the region in terms of energy security. The need for an indigenous refinery is underscored by the fact that the region is highly dependent on Middle Eastern and European refineries for its fuel, which exposes it to global price fluctuations and supply chain disruptions.

In his speech, President Ruto of Kenya expressed strong support for the project, emphasizing that a regional refinery would significantly lower costs, create jobs, and reduce the region’s dependence on external suppliers. “We’re going to have a joint refinery in Tanga to benefit all of us because that refinery is going to take on board the oil from the DRC, the oil from Kenya, the oil from South Sudan, and the oil from Uganda,” President Ruto said.

The planned refinery would not only supply fuel to Kenya, Uganda, and South Sudan but also serve as a key energy hub for other countries in the region. Analysts believe that a local refinery would allow East African countries to capture more value from their own natural resources, instead of exporting crude and importing expensive refined products.

A Vision for Regional Integration

Tanzania’s port of Tanga, with its strategic location along the Indian Ocean, is seen as an ideal site for the refinery. The region has abundant crude oil resources, particularly from Uganda, which has been developing its oil industry for several years. Additionally, countries such as South Sudan, which possess significant oil reserves, would benefit from having a nearby refinery to process their oil, allowing them to avoid the current reliance on distant refineries in the Middle East and Europe.

The project aligns with broader regional integration goals, fostering cooperation between East African nations. Dangote’s refinery is expected to lower energy costs across the region, drive industrial growth, and create long-term economic opportunities. The refinery would also contribute to strengthening the regional infrastructure by boosting the local manufacturing and petrochemical sectors.

Kenya, Uganda, and Tanzania stand to gain economically from the refinery, as it could lead to the development of supporting industries, including distribution networks, retail fuel infrastructure, and manufacturing for petrochemical products. A key aspect of this initiative is the economic diversification that it promises, helping countries in the region transition from being solely oil importers to energy producers and suppliers.

Long-Term Economic Impact

The establishment of a refinery in East Africa has the potential to transform the regional economy. By processing crude oil locally, the refinery would add significant value within the region, reducing costs, creating jobs, and stimulating industrial growth. Furthermore, it could help stabilise energy prices across East Africa, ensuring that small businesses and consumers are not subject to the volatility of global energy markets.

Dangote’s commitment to building this refinery could also open doors for other industrial projects in East Africa, fostering an environment conducive to further investments in the energy and manufacturing sectors. The refinery would likely create tens of thousands of jobs during the construction phase and support thousands of permanent positions once operational.

The economic implications are far-reaching, as the refinery could also pave the way for a regional petrochemical industry, supplying raw materials for the production of fertilisers, plastics, and other industrial products. This would not only contribute to local industrialisation but also boost the region’s exports