Dangote to launch $16bn refinery in Kenya

Africa’s richest man was set to break ground on a new $16 billion mega-refinery in Kenya on Wednesday that he says will mark a vital step towards the continent’s self-sufficiency in fuel.

Aliko Dangote created Africa’s biggest oil refinery in his native Nigeria, and says the east African version will have a capacity of 700,000 barrels per day — larger than any in Europe.

It is being built on the Indian Ocean coast at Lamu, where Kenya is also developing a major port.

The project has already faced a lawsuit from a local community over land rights. A court ruling published Monday said the ground-breaking could go ahead, but the case will continue.

Greenpeace and other environmentalists have also raised objections over its impact.

Dangote dismissed the challenges on Tuesday, telling reporters: “There’s actually no problem with these sort of cases… There are people who don’t want the development of Africa.”

Tanzania and the Kenyan port city of Mombasa had been mooted as possible locations for the refinery, but Dangote said Lamu was “much better”, with “better, cleaner water”, “solid land”, and a “deep sea area”.

He said the refinery would also include a 1,000-megawatt power facility, with half the production going back into the Kenyan grid.

Dangote framed the refinery as a vital step towards Africa reducing its reliance on fuel imports and foreign expertise.

“By 2030, the majority of African countries will be self-sufficient (in fuel). It does not matter where it is refined, but it should be in the African continent, on the soil of Africa,” he said.

“If anybody is doing a big project going forward, you don’t have to go and bring Chinese or Indians and build it for you,” he added.

– ‘A start-up’ –

There have been questions about where the new refinery will source the crude oil to refine, given that east African countries are only just starting to find and exploit significant reserves.

Dangote said it would source crude from multiple places, including the Middle East, the United States, and others — and would be ready as countries like Kenya, Tanzania and Mozambique start producing more.

“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, highlighting US President Donald Trump’s threats to stop exporting diesel.

He insisted the Kenyan refinery would be just a small part of meeting the demand that Africa will create as its economy grows.

“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.