Dangote refinery proposal has emerged as a major development in East Africa’s energy sector, with Aliko Dangote offering to build a crude oil refinery in Tanzania matching the scale of his Lagos facility, in a move backed by Kenya and Uganda.
The proposal was presented during the inaugural Africa We Build Summit in Nairobi, hosted by the Africa Finance Corporation, where regional leaders and investors gathered to discuss infrastructure-led industrialisation. Kenya’s President William Ruto confirmed that discussions are already underway between his government, Uganda, and Dangote to advance the project.
Dangote refinery proposal gains regional backing
Dangote said he is prepared to replicate his 650,000-barrel-per-day refinery in Lagos in East Africa if political support is secured. “If the president of Kenya or Uganda supports us, we’ll build an oil refinery in this region just as big as the one in Lagos,” he said at the summit.
Ruto confirmed that Kenya and Uganda are actively engaging with Dangote on the proposal. He added that the project would involve a pipeline linking the Kenyan port city of Mombasa to Tanga in northeastern Tanzania, where the refinery would likely be located.
The refinery would process crude oil from regional producers, including the Democratic Republic of Congo and South Sudan, providing a local alternative to imported refined petroleum products.
Energy supply pressures drive Dangote refinery proposal
The Dangote refinery proposal comes at a time when East Africa is facing growing fuel supply challenges. Disruptions to global shipping routes, particularly through the Strait of Hormuz, have increased fuel prices and freight costs.
As a result, countries in the region that rely heavily on imports from the Middle East and Europe are experiencing supply constraints. The gap between domestic production and consumption has widened, highlighting the need for local refining capacity.
Dangote’s existing refinery in Lagos has already begun supplying refined petroleum products to African markets, including Kenya and Tanzania. In March 2026, it exported 456,000 tonnes of refined products to five African countries, demonstrating its operational capacity and regional reach.
Infrastructure strategy behind Dangote refinery proposal
Tanga has emerged as a strategic location for the proposed refinery due to its role in regional energy infrastructure. It is the endpoint of the East African Crude Oil Pipeline (EACOP), a 1,443-kilometre system designed to transport crude oil from Uganda’s Lake Albert oilfields to the Indian Ocean.
First oil from EACOP is expected in the second half of 2026, making the timing of the Dangote refinery proposal significant. A refinery at Tanga would enable crude oil to be processed locally rather than exported in raw form.
This approach aligns with broader efforts by African governments to increase value addition within the continent. By refining crude domestically, countries can capture more economic value and reduce dependence on imports.
Uganda and regional integration considerations
Uganda’s President Yoweri Museveni highlighted the importance of value addition during the summit. He noted that exporting raw materials results in lost economic opportunities, while processing them locally creates jobs and increases revenue.
Uganda is already developing a smaller refinery with a capacity of 50,000 to 60,000 barrels per day to serve local markets. However, a larger facility under the Dangote refinery proposal could significantly expand regional refining capacity.
Currently, Uganda relies on Kenya’s pipeline system for about 90% of its refined fuel imports. This dependence has created vulnerabilities, particularly during policy disputes between the two countries.
To address this, Uganda and Tanzania agreed in February 2026 to fast-track a pipeline connecting Uganda to Tanga. The Dangote refinery proposal could complement or replace this arrangement by providing a larger, integrated solution.
Dangote’s broader expansion strategy
The Dangote refinery proposal is part of a wider expansion plan by Dangote Industries, which aims to grow into a $100 billion revenue business by 2030. This strategy includes investments in refining, petrochemicals, and fertiliser production across Africa.
Dangote’s Lagos refinery reached full capacity in early 2026 and has already demonstrated its ability to supply multiple African markets. The company is also pursuing financing arrangements to support further expansion, including a syndicated loan led by Afreximbank.
In addition, plans for a partial public offering of the refinery business are expected to raise significant capital, which could support new projects such as the proposed East African refinery.
Economic and industrial implications
The Dangote refinery proposal has significant implications for East Africa’s economy. By increasing local refining capacity, the region could reduce its reliance on imported fuel, stabilise prices, and improve energy security.
The project could also create jobs and stimulate industrial activity, particularly in sectors linked to energy and manufacturing. Furthermore, it could strengthen regional integration by encouraging cooperation between countries on large-scale infrastructure projects.
However, the success of the proposal will depend on several factors, including financing, regulatory approvals, and political coordination among participating countries.
Challenges and next steps
Despite strong political backing, the Dangote refinery proposal remains at an early stage. No detailed timeline, financing structure, or final site has been confirmed.
Analysts note that large infrastructure projects in Africa often face delays due to regulatory and logistical challenges. Therefore, translating the proposal into a completed refinery will require sustained commitment from all stakeholders.
President Ruto acknowledged challenges to regional cooperation, describing “petty jealousy” as a barrier to integration. He emphasised the need for collaboration to unlock the full potential of such projects.
Outlook for East Africa’s energy sector
The Dangote refinery proposal represents a potential turning point for East Africa’s energy sector. If implemented, it could transform how the region produces and distributes fuel.
By processing crude oil locally, East African countries would be better positioned to manage supply shocks and reduce exposure to global market volatility. This shift could also support broader industrialisation efforts.
Ultimately, the proposal highlights the growing role of private sector investment in driving infrastructure development across Africa. As discussions continue, the focus will be on whether the project can move from concept to execution.
If realised, the Dangote refinery proposal could become one of the largest energy projects in the region, reshaping the economic landscape and strengthening energy independence for East African countries.
