Dangote to set up mega oil refinery in EAC, Tanzania

• Aliko Dangote proposes setting up mega oil refinery in Tanga, Tanzania
• Dangote’s proposed EAC oil refinery to rival Nigeria’s 650,000 barrels daily output 
• EAC presidents reiterate need for self reliance

Tanzania will host mega oil refinery plant that is due to be set up by Africa’s richest man, Aliko Dangote. Dangote’s envisioned East African oil refinery is expected to rival his Nigerian 650,000 barrels-per-day facility, the energy tycoon told a presidential panel at the “Africa We Build” summit in Kenya’s capital Nairobi.

With the expected production of up to 10% of US’ current refining capacity, the proposed plant will be one of the largest oil refineries in the world.

Aliko Dangote made the announcement in the presence of Kenyan President, William Ruto, and Ugandan President, Yoweri Museveni; both of whom reassured the business mogul of favourable policy backing and general cooperation from their governments.

Short of governmental b, the proposed project is expected to be up and running in just four years. Given the fact that the Nigerian oil refinery  already exports an impressive 1.1 billion litres of aviation fuel to Europe, a second plant in East Africa would more than double output and revenues.

Notably, with the Gulf troubled waters, there is growing demand for Dangote’s refined oil products. South Africa trade volume with Nigeria is said to have surged to $2.16 billion. according to  data released at the fourth edition of the South Africa Week mid April in Lagos.

In line with this growth, the proposed new oil refinery plant in East Africa will serve to meet Dangote’s articulated dream of reshaping Africa’s import dependency. “It would increase fuel supply, deepen regional integration, and accelerate the continent’s push towards industrial self-sufficiency,” he told the presidential meeting.

Other than the regional benefits, the acclaimed businessman indicated plans to have the envisioned refinery go public allowing common Africa’s to invest in the venture. “I want to just go into the market, and from where I stand, all Africans would invest in the Dangote refinery…and we’ll be paying dividends in dollars,” he announced the soon to come IPO.

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Dangote’s proposed Tanzania oil refinery to serve local needs

Other than exports, the joint oil refinery is expected to also serve all of East and Central Africa domestic needs. The source of its oil? Right nextdoor in Uganda and elsewhere across the region (Kenya, South Sudan, and DRC). Notably, Uganda is already working with Tanzania to finalize the EACOP, a major oil pipeline.

“The shared oil pipeline infrastructure serves to improve efficiency and reduce costs,” the delegates were informed.

Let’s take a step back. Ahead of Aliko Dangote coming into the picture, already Uganda, Tanzania and Kenya, were in talks about the potential set up of a mega crude oil refinery in the port city of Tanga, Tanzania. Now that Africa’s richest man has brought his financial muscle to the table, the plans are even more plausible.

All Mr. Dangote asked of the president’s at the summit was ‘consistency in government policy and strong institutional support.’ Dangote emphasized that uncertainty and the threat of potential reversals in policy  discourages long-term capital investment across Africa.

On his part, Kenyan President Ruto seconded Dangote’s view; “Africa can no longer afford to export raw materials and import finished products…it is a drain of jobs and long-term prosperity,” he said.

“Why would we fail? We have the raw materials, we have the market, we have the capital, and we have the industrialists to run these projects,” he asserted.

Similarly, Ugandan President, Yoweri Museveni, alluded to value lost from export of unprocessed raw materials. “We cannot continue exporting raw materials…It is near criminal to export unprocessed resources when we have the capacity to add value,” he emphasized.

With both presidents siding with Aliko Dangote, the delegates heard the need to build integrated industrial ecosystems, linking energy, mining, manufacturing, and logistics across the East African region.

Summing up, Dangote reminded the delegates that “…without local leadership and domestic commitment…no investors will be attracted to Africa.”

The leaders agreed that Africa’s development is undermined due to the continent’s over reliance on foreign investors; who, in many cases, were not primarily interested in building local economies. Dangote stated, “In the past, many international financial institutions were not focused on developing Africa; their priority was their own interests. Today, however, we have institutions that are willing to listen to African entrepreneurs.”

Mr. Dangote told the presidential meeting that “…the era of waiting for external salvation must end…no meaningful investment will come without domestic leadership and commitment.”

“We have made serious mistakes by relying too heavily on foreign investors. No investor will come without local leadership and domestic commitment. We must take the risk ourselves and build our own continent rather than wait for outsiders,” he summed up.

Should the proposed oil refinery plant be realized, it would go a long way in realizing the region’s sought after energy independence.

According to reports by Business Insider, currently, East African countries are extremely exposed to energy disruptions caused by the Iran war.

The report shows that many EAC countries  rely on the Middle East for their fuel imports. As an example, the report cites Kenya, which it says has “…recently renewed supply agreements with Gulf-based companies, including Saudi Aramco, Abu Dhabi National Oil Company, and Emirates National Oil Company.

Dangote’s Nigeria based oil refinery is already helping the EAC reduce dependency on Gulf oil.

According to the report, as of March; “Nigeria shipped 12 cargoes of refined petroleum products to Côte d’Ivoire, Cameroon, Tanzania, Ghana, and Togo, totaling about 456,000 tons.”

While official details as to the Tanzanian side of the plans are yet to be released, Kenya’s President Ruto told a press conference in the wake of the presidential summit that Kenya, Uganda and Tanzania have already agreed to jointly develop a single large-scale refinery.

“We have made the decision that we are going to do this together. We are going to harness the synergies of Kenya, Uganda, Tanzania, and South Sudan, possibly working together, so that we can have one big refinery here,” he disclosed at the Kenya Mining Investment Conference and Expo in Nairobi on Tuesday, April 28, 2026.