Dangote to Offer 30% Stake in $16 Billion Refinery to East African Nations

Nigerian industrialist Aliko Dangote revealed plans to allocate a significant portion of his ambitious $16 billion refinery project to East African nations. During the groundbreaking ceremony for the Dangote East Africa Petroleum Refinery and petrochemicals special economic zone in Kenya’s Lamu County, Dangote stated that up to 30% of the refinery’s equity would be made available to countries in the region.

This strategic move is designed to foster regional economic integration and provide a direct financial interest in the project for participating nations. Dangote highlighted that the refinery’s output is intended to serve a broad regional market, including Kenya, Uganda, Rwanda, Tanzania, Ethiopia, South Sudan, the Democratic Republic of Congo, and Mozambique, among others.

“The refinery will not only provide security and supply, but will also bring prosperity,” Dangote remarked, emphasizing the project’s potential to boost economic development and create employment opportunities. He specifically commended Kenya and Rwanda for their swift engagement with the equity offer, signaling his anticipation for broader regional participation.

Beyond the core petroleum processing, the project is envisioned to catalyze the growth of ancillary industries, leveraging reliable energy supplies. Dangote also stressed the importance of skill development, expecting young Africans to gain valuable technical expertise during the construction and operational phases.

Ethiopian Prime Minister Abiy Ahmed, present at the event, echoed the project’s significance. He noted that the refinery could substantially reduce the region’s reliance on fuel refined outside Africa, thereby mitigating exposure to volatile global market fluctuations. The refinery, planned to process 700,000 barrels of crude oil daily, will be part of a larger industrial complex featuring a power plant, plastics manufacturing, and chemical production facilities.

Source: https://nilepost.co.ug/news/374596/dangote-sets-aside-30-refinery-stake-for-east-african-countries