Africa’s richest businessman, Aliko Dangote, is planning a massive new oil refinery project in East Africa, with Kenya’s coastal city of Mombasa emerging as the preferred location.
The proposed refinery, expected to cost between $15 billion and $17 billion, would mirror the scale of Dangote’s mega refinery in Lagos, Nigeria, which became fully operational earlier this year and now plays a major role in supplying fuel across Africa.
The move comes as many African countries seek greater energy security following disruptions in global oil supplies linked to tensions involving Iran and the temporary closure of the Strait of Hormuz, a key global oil shipping route.
Speaking recently, Kenyan President William Ruto said East African nations want to reduce dependence on imported fuel and strengthen regional industrial development using African resources.
Although talks initially involved building the refinery in Tanzania’s Tanga port, Dangote said he now prefers Mombasa because of its deeper port facilities and Kenya’s larger economy and fuel market.
Analysts say the project could significantly reduce East Africa’s dependence on refined petroleum imports from the Middle East while boosting regional fuel supply, industrial growth and job creation.
Despite Africa’s vast crude oil reserves, many countries still rely heavily on imported refined products due to limited refinery infrastructure. East Africa currently has no active refinery, even though countries such as Uganda, Kenya and South Sudan possess substantial oil reserves.
Experts believe more local refineries could lower fuel prices, improve energy access and strengthen Africa’s economic independence.