Africa’s richest man, Aliko Dangote, is set to break ground on a $16 billion mega-refinery in Kenya, describing the project as a major step towards making Africa self-sufficient in fuel production.
The refinery, to be located on the Indian Ocean coast at Lamu, is expected to have a production capacity of 700,000 barrels per day, which would make it larger than any refinery currently operating in Europe.
The project is being developed alongside Kenya’s plans to expand the port facilities in Lamu. However, it has faced opposition from a local community over land rights, while environmental groups, including Greenpeace, have also raised concerns about its potential environmental impact.
A court ruling published on Monday cleared the way for the groundbreaking ceremony to proceed, although the land dispute will continue through the legal process.
Speaking to reporters on Tuesday, Dangote dismissed the challenges facing the project, saying some people opposed major developments in Africa.
The billionaire said Lamu was chosen over other locations, including Tanzania and Mombasa, because of its cleaner water, solid land and deep-sea access.
The refinery will also feature a 1,000-megawatt power plant, with half of the electricity generated expected to be supplied to Kenya’s national grid.
Dangote said the project would help reduce Africa’s dependence on imported fuel and foreign expertise. He expressed optimism that most African countries would become self-sufficient in fuel by 2030.
Crude Oil Supply
Questions have been raised over where the refinery will obtain the crude oil needed for its operations, particularly because East African countries are only beginning to develop their oil reserves.
Dangote said the refinery would source crude from several regions, including the Middle East and the United States, while also preparing to receive supplies from Kenya, Tanzania and Mozambique as their oil production expands.
He described the 700,000-barrel-per-day refinery as a major investment for the region but said it represented only a starting point in meeting Africa’s future energy needs.
Dangote said Africa must begin preparing now for the growing fuel demand that will accompany the continent’s expanding population and economy.
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