Museveni Endorses Regional Refineries, Urges East African Economic Integration

President Yoweri Museveni has thrown his weight behind plans for a major oil refinery in Lamu, Kenya, and similar facilities in Uganda and Tanzania. Speaking at the groundbreaking ceremony for the Dangote East Africa Petroleum Refinery, Museveni highlighted the critical role of regional cooperation and value addition in Africa’s economic advancement.

“I am very happy about this refinery,” stated Museveni, envisioning the Lamu project as complementary to Uganda’s own planned refinery and a proposed facility in Tanga, Tanzania. He stressed that having several refineries would not be problematic, provided there is coordination and a focus on shared economic interests. This approach, he believes, will ensure that African nations benefit directly from processing their natural resources rather than exporting raw materials at a loss.

President Museveni reiterated Uganda’s commitment to building its own refinery to serve domestic needs and other African markets. He also pledged to follow up on the stalled refinery project in Tanga with Tanzanian President Samia Suluhu Hassan, aiming to identify and overcome any obstacles. “We can’t change that. The refinery will produce for Uganda and for the interior parts of Africa,” he remarked regarding Uganda’s plans.

The Ugandan leader underscored the economic disadvantages of exporting raw commodities like coffee, cotton, and gold, pointing out the significant value addition achievable through local processing. He cited coffee, where the value can increase from $2 per kilo for raw beans to $40 for processed products, representing lost income and employment opportunities for African economies.

Museveni also renewed his call for deeper political integration within East Africa, arguing that it would facilitate the equitable sharing of jobs, revenue, and industrial opportunities. He drew a parallel with Nigeria, where internal transportation of crude for refining avoids the complexities of international borders. “Political integration would help address such concerns by facilitating the movement of people, sharing of revenue and access to employment across the region,” he explained.

Kenyan President William Ruto echoed Museveni’s sentiments, describing the groundbreaking as a pivotal moment for regional industrialization and energy security. Aliko Dangote, Chairman of Dangote Industries Limited, affirmed the project’s aim to reduce Africa’s reliance on imported refined products and foster job creation through skills development and local supply chain participation. The refinery is expected to process up to 700,000 barrels of crude oil daily, with a portion of equity earmarked for East African countries.

Source: State House (Uganda)