Dangote Targets African Fuel Self-Sufficiency By 2030

Africa could meet most of its refined fuel needs by 2030, according to Nigerian industrialist Aliko Dangote, who is preparing to launch a $16 billion refinery project in Kenya.

Dangote is scheduled to break ground on the proposed 700,000-barrel-per-day refinery in Lamu, on Kenya’s Indian Ocean coast, on Wednesday. Construction is expected to take about 30 months.

Speaking to journalists in Nairobi on Tuesday,  Africa’s richest man said the project was part of efforts to reduce Africa’s dependence on exporting raw materials and importing finished products.

“By 2030, the majority of African countries will be self-sufficient. It does not matter where it is refined, but it should be in the African continent, on the soil of Africa,” he said in response to a question from AFP about when Africa could stop importing fuel from outside the continent.

Dangote dismissed concerns over the Kenyan project, which is already facing a land rights court case and opposition from environmental groups, including Greenpeace, over its potential environmental impact.

“There’s actually no problem with these sort of cases,” he said. “There are people who don’t want the development of Africa.”

Refinery to source crude globally

The project has also raised questions about crude oil supplies, as East African countries are only beginning to develop some of their significant oil reserves.

Dangote said the refinery would obtain crude from several sources, including the Middle East and the United States, while positioning itself to benefit as Kenya, Tanzania and Mozambique increase their oil production.

“Are we going to wait until (Africa has) one quarter of the world’s population before we start thinking of what to do? We have to start addressing that issue today,” he said, referring to US President Donald Trump’s threats to stop exporting diesel.

Dangote described the proposed refinery as an initial investment in a much broader industrial development plan for the region.

“When you talk about 700,000 barrels per day, it’s actually small. For the region, it’s a big refinery, it’s a big investment, but it is a start-up,” he said.

“This refinery is not all we are going to do there. It’s just the start… You will see the number of industries that will come around the refinery,” he added.

Dangote urges Africa to process raw materials

The industrialist identified Africa’s continued dependence on exporting raw materials and importing finished products as a major economic challenge.

He argued that processing resources locally would help retain more value on the continent, create jobs and support industrial development.

“The biggest problem is that we export raw materials at maybe 5 to 10 per cent of its value, and then we end up buying at 100 per cent of its value,” he said.

“We are exporting jobs, because when we keep exporting raw materials, you are creating jobs out there. And when you buy finished products from them… you are importing poverty, because you are not actually creating any jobs here.”

The proposed Kenyan refinery is expected to expand Dangote Group’s investments beyond Nigeria and increase refining capacity in East Africa.