Nigerian businessman and Dangote Group President, Aliko Dangote, has projected that most African countries will become self-sufficient in refined petroleum products by 2030 as he advances plans for a new $16bn refinery in Kenya.
Dangote is expected to break ground for the East Africa Oil Refinery in Lamu, Kenya, on Wednesday, September 30. The facility is planned to process 700,000 barrels of crude oil per day and is expected to take about 30 months to complete.
Speaking in Nairobi, Dangote said the project formed part of a broader effort to ensure Africa processes its own raw materials and retains more value from its natural resources.
“By 2030, the majority of African countries will be self-sufficient. It does not matter where it is refined, but it should be in the African continent, on the soil of Africa,” he said.
Dangote said the refinery would source crude from different locations, including the Middle East and the United States, while remaining positioned to process crude from African producers as production increases in countries such as Kenya, Tanzania and Mozambique.
He described the planned 700,000-barrel-per-day facility as only the beginning of a wider industrial development around the refinery.
“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.
“This refinery is not all we are going to do there. It’s just the start… You will see the number of industries that will come around the refinery,” he added.
The proposed refinery has also faced questions over environmental concerns, land rights and the availability of crude supplies.
Dangote, however, maintained that the project was necessary to address Africa’s growing energy and industrial needs.
He also criticised the continued export of raw materials from Africa, arguing that the practice deprives the continent of jobs and economic value.
“The biggest problem is that we export raw materials at maybe 5 to 10 per cent of its value, and then we end up buying at 100 per cent of their value.
“We are exporting jobs, because when we keep exporting raw materials, you are creating jobs out there. And when you buy finished products from them… you are importing poverty, because you are not actually creating any jobs here,” he said.
2. Dangote’s proposed Lamu refinery is expected to form part of his broader push to expand refining and industrial capacity in Africa, with the facility intended to serve Kenya and other markets in the region.
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