East African countries are advancing plans to build a joint oil refinery in the port city of Tanga, Tanzania, as part of a broader strategy to reduce reliance on imported fuel and enhance energy security across the region. The proposed facility would process crude oil from multiple member states, including the Democratic Republic of Congo, Kenya, South Sudan, and Uganda, according to President William Ruto.
Regional Refinery Plans Gain Momentum
Speaking at a conference on infrastructure financing in Nairobi, President Ruto confirmed that discussions are ongoing to establish the refinery, which would integrate crude supplies from several East African nations. He emphasized that the project would benefit all participating economies by creating a shared energy infrastructure and reducing vulnerability to global oil price fluctuations and geopolitical disruptions.
The region currently depends heavily on refined petroleum imports, primarily from the Middle East, exposing it to shocks such as those arising from tensions involving Iran. Industry analysts believe a regional refinery could significantly cut import bills, improve energy security, and support industrialization by ensuring a stable supply of petrol, diesel, and aviation fuel.
Dangote Expresses Interest in Leading Investment
Africa’s richest businessman, Aliko Dangote, has signaled his willingness to spearhead the project if regional governments align on policy and investment frameworks. Dangote, worth $33.2 billion, said the refinery could be built within four to five years once agreements are finalized, mirroring the scale and efficiency of his existing Dangote Refinery in Nigeria, which has a capacity of 650,000 barrels per day.
“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,” Dangote stated. His involvement could bring technical expertise and financing credibility to the initiative.
Uganda Pursues Independent Refining Ambitions
Separately, Uganda is pursuing its own refining plans. 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.
Dangote’s Broader Industrial Vision for Africa
Beyond refining, Dangote outlined plans to deepen industrial investment across Africa, including the establishment of about 20 fertilizer blending plants by 2028 to boost agricultural productivity. He also encouraged African investors to participate in the eventual listing of his refinery, assuring potential shareholders of dollar-denominated dividend returns.
Legit.ng earlier reported that Dangote 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 and supporting long-term funding needs for the group’s expanding industrial footprint.
