East African leaders are advancing talks to establish a regional oil refinery in Tanzania as part of efforts to reduce dependence on imported fuel and stabilise energy supply across the bloc.
President William Ruto revealed that discussions are underway to build a refinery in the port city of Tanga, designed to process crude from multiple countries in the region, Reuters reported.
Kenya, Tanzania Explore Joint Refinery as Dangote Signals Readiness to Deliver Project in 5 years
Aliko Dangote expressed commitment to lead the regional refinery project.
According to him, the proposed facility would integrate crude oil supplies from the Democratic Republic of the Congo, Kenya, South Sudan, and Uganda, creating a shared energy infrastructure that benefits participating economies.
Ruto told a conference on infrastructure financing in Nairobi:
“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 DRC (Democratic Republic of the Congo), the oil from Kenya, the oil from South Sudan, and the oil from Uganda,”
The move comes as East Africa continues to rely heavily on refined petroleum imports—primarily from the Middle East—making the region vulnerable to geopolitical shocks, including disruptions linked to tensions involving Iran.
Industry analysts note that a regional refinery could significantly cut import bills, improve energy security, and support industrialisation by ensuring a more stable supply of petroleum products such as petrol, diesel, and aviation fuel.
Kenya, Tanzania Explore Joint Refinery as Dangote Signals Readiness to Deliver Project in 5 years
The refinery project is expected to improve regional energy independence.
Dangote signals investment interest and expansion plans
Africa’s richest businessman, Aliko Dangote, expressed readiness to spearhead the project if governments in the region align on policy and investment frameworks.
He indicated that the refinery could mirror the scale and efficiency of the Dangote Refinery, which has a capacity of 650,000 barrels per day and is one of the largest single-train refineries globally.
Dangote, who is worth $33.2 billion, said the project could be completed within four to five years once agreements are finalised, underscoring the importance of political will and regional cooperation.
Dangote said:
“My commitment today here is that if we agree with the three or four governments here about the refinery, we will lead and we’ll make sure that refinery is built within the next four or five years.”
His involvement could bring technical expertise and financing credibility to the initiative.
Separately, Uganda is already pursuing its own refining ambitions. The country, which expects to begin commercial oil production soon, signed a deal in 2024 with UAE-based Alpha MBM Investments to construct a 60,000-barrel-per-day refinery.
Beyond refining, Dangote also outlined plans to deepen industrial investment across Africa, including the establishment of about 20 fertiliser blending plants by 2028 to boost agricultural productivity.
He further encouraged African investors to participate in the eventual listing of his refinery, assuring potential shareholders of dollar-denominated dividend returns.
Dangote to sell 10% of refinery via Africa-wide IPO
Meanwhile, earlier reported that Dangote unveiled plans to sell a 10% stake in his $20 billion refinery through a Pan-African Initial Public Offering (IPO) expected in 2026.
The proposed listing is designed to broaden investor participation across the continent while strengthening Africa’s capital markets.
Dangote noted that the offering would also support long-term funding needs for the group’s expanding industrial footprint.
