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After building the world’s biggest refinery in Nigeria, Dangote wants to build another one in Tanzania, Kenya

Aliko Dangote is planning a new large-scale refinery in East Africa, expanding his energy investments beyond Nigeria into Tanzania or Kenya.
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  • Dangote Group plans new refinery expansion in East Africa

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  • Proposed locations include Tanzania or Kenya

  • Project aims to reduce fuel import dependence in the region

  • Facility expected to mirror Nigeria’s large-scale refinery model

Nigerian industrialist Aliko Dangote is planning a major expansion of his oil refining empire beyond Nigeria, with proposals to develop a large-scale refinery in East Africa, potentially in either Tanzania or Kenya.

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The project is being driven by the Dangote Group, which already operates what is widely regarded as Africa’s largest refinery in Lagos, Nigeria. The Nigerian facility has a refining capacity of about 650,000 barrels per day and represents one of the continent’s most significant private energy investments.

According to reports, the proposed East African refinery is still at the discussion and planning stage, with talks ongoing between Dangote and several governments in the region. Countries involved in preliminary engagements include Tanzania and Kenya, alongside broader regional stakeholders such as Uganda, South Sudan, and the Democratic Republic of Congo.

Aliko Dangote

The proposed project is expected to follow a regional model, serving multiple East African countries rather than a single domestic market. The aim is to reduce the region’s heavy dependence on imported refined petroleum products, which currently exposes many East African economies to global oil price volatility, shipping disruptions, and foreign exchange pressures.

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If approved, the refinery is expected to be built on a similar scale to the Nigerian facility, with capacity likely in the range of several hundred thousand barrels per day. Industry estimates suggest a construction timeline of around four to five years, depending on regulatory approvals, financing arrangements, and intergovernmental agreements.

The expansion reflects Dangote’s broader strategy of strengthening Africa’s downstream oil infrastructure and reducing reliance on imported fuel. His Lagos refinery has already been described as a transformative project for Nigeria’s energy sector, with the potential to significantly reduce fuel imports and improve domestic supply stability.

The East African proposal also aligns with wider continental economic goals, including the African Continental Free Trade Area (AfCFTA), which encourages cross-border industrial projects and regional value chains. A shared refinery could enhance energy security and potentially stabilize fuel prices across multiple countries.

However, the project’s success will depend on political cooperation, regulatory frameworks, and infrastructure readiness in the host country. Analysts note that multi-country energy projects often face delays due to coordination challenges, investment risks, and policy differences.

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Despite these challenges, the proposal underscores Dangote’s growing influence in Africa’s industrial landscape, particularly in the energy and manufacturing sectors.

If completed, the East African refinery would mark one of the largest private-sector energy developments in the region, further extending Nigeria’s industrial footprint across the continent and reshaping fuel supply dynamics in East Africa.

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