Africa must industrialise Africa, Dangote says as $16bn Kenya refinery construction begins

Africa must move beyond exporting raw materials and build industries that process its resources locally, President of Dangote Industries Limited, Aliko Dangote, has said as construction begins on the $16 billion Dangote East Africa Petroleum Refinery and Petrochemicals project in Lamu, Kenya.

Dangote made the declaration on Wednesday at the groundbreaking ceremony of the refinery, describing the project as part of a broader effort by African countries and businesses to build industrial capacity within the continent.

“Today Africa has actually gathered here in Lamu. We have come from different countries representing different governments, institutions and communities. But we are united by one conviction. Africa must industrialise Africa,” Dangote said.

The refinery is expected to have a processing capacity of about 700,000 barrels of crude oil per day when completed and is being developed to serve Kenya and other markets in East Africa. Reuters reported that the project is scheduled for completion in 2030.

Dangote said the project had moved from an initial proposal for Tanga in Tanzania to Lamu after discussions with regional leaders and further assessment of the project.

He recalled that the project discussions began after Kenyan President William Ruto sent a representative to meet him over the possibility of buying fertiliser from Dangote’s existing operations.

According to him, discussions involving Ruto, Uganda’s President Yoweri Museveni and other regional leaders eventually led to the decision to pursue a refinery project in East Africa.

Dangote said the speed with which the Lamu project had progressed demonstrated the commitment behind the investment, noting that more than 110 pieces of equipment had already arrived at the site, with another 400 expected within 60 days.

He also disclosed that the technology for the refinery was being supplied by UOP.

The Dangote Group chairman said the project represented more than the construction of another refinery, describing the gathering of African leaders and institutions in Lamu as a demonstration of countries working together to build industrial capacity on the continent.

The project is located at Lamu Port, which is being developed as an important transport and trade gateway for the region. The refinery is expected to supply petroleum products to Kenya and neighbouring markets as the region seeks to reduce dependence on imported refined fuels.

Dangote also urged local communities to be careful with their land, citing the increase in land values around his Nigerian refinery project.

He said land around the Dangote refinery in Nigeria had increased by more than 1,000 per cent, adding that communities should recognise land as an important economic asset.

“Sixteen billion dollars of investment is not a joke,” he said, while acknowledging the potential economic impact of the project on Lamu.

The Lamu refinery is expected to create a major industrial complex around refining and petrochemicals, with the project positioned to serve markets beyond Kenya.

Dangote’s comments come as several African countries seek to reduce dependence on imported petroleum products by developing domestic and regional refining capacity.

The Lamu project is also emerging within a wider East African push to develop competing petroleum supply and energy hubs, with Kenya, Tanzania and Uganda pursuing different refinery and petroleum infrastructure projects.

The African Industrialist said the presence of African governments, financial institutions, businesses and communities at the Lamu groundbreaking reflected the need for the continent to work together to build industries capable of processing its own resources and retaining more value within Africa.