President and chief executive of Dangote Industries Limited, Aliko Dangote, looks on near an oil vessel at the loading and discharging point of the Dangote refinery near Lagos, Nigeria, on April 6, 2026
Africa’s richest businessman, Aliko Dangote, is planning a major expansion of his oil refining operations into East Africa, with Kenya’s coastal city of Mombasa emerging as the preferred location for a proposed multi-billion-dollar refinery project.
The development comes barely two years after the successful launch of the Dangote Refinery in Lagos, Nigeria currently the largest single-train refinery in the world and at a time when African nations are increasingly seeking energy security amid global geopolitical tensions and disruptions in international oil supply chains.
According to reports, Dangote is considering investing between 15 and 17 billion dollars in the East African refinery project, which is expected to significantly boost the region’s capacity to process crude oil locally rather than relying heavily on imported refined petroleum products.
The planned expansion follows the sharp global energy disruptions triggered by the ongoing conflict involving Iran and the closure of the Strait of Hormuz, a vital shipping route through which nearly one-fifth of the world’s oil and natural gas supplies pass.
The crisis exposed Africa’s dependence on fuel imports from the Middle East, leaving many countries vulnerable to supply shortages and rising prices. Several African nations, including Cameroon, Ghana, Togo and Tanzania, reportedly turned to Nigeria’s Dangote Refinery for fuel supplies as Middle Eastern exports became increasingly difficult to access.
Dangote’s Lagos refinery, valued at about 19 billion dollars, began full-scale production earlier this year with a refining capacity of 650,000 barrels per day. Since operations intensified, the facility has played a critical role in stabilizing fuel supply within Nigeria and across parts of Africa.
The refinery has also positioned Nigeria to become a major exporter of refined petroleum products such as jet fuel and diesel, especially as the country’s state-owned refineries remain largely non-functional.
Speaking recently, Kenyan President William Ruto confirmed that East African countries had been discussing plans for a regional refinery project aimed at reducing dependence on foreign fuel imports.
Ruto said African nations no longer want to remain vulnerable to global conflicts and shipping disruptions originating outside the continent. He stressed the need for Africa to utilize its own natural resources to drive industrialization and economic growth.
Although earlier discussions considered Tanzania’s Tanga Port as a possible site for the refinery, Dangote later indicated that he favours Kenya’s Mombasa Port because of its deeper harbour, stronger infrastructure and larger domestic market.
Analysts say the proposed refinery could transform East Africa’s energy landscape, especially as the region currently lacks any operational oil refinery despite possessing significant crude oil reserves in countries such as Uganda, Kenya, South Sudan and the Democratic Republic of Congo.
East Africa’s only refinery, located in Mombasa, ceased operations in 2013 after investors withdrew and government reforms stalled. Since then, countries in the region have depended almost entirely on imported fuel products from suppliers in the Middle East and Asia.
Experts believe expanding refining capacity within Africa is becoming increasingly important for economic stability, industrial development and energy independence. According to African Union data, the continent refines less than half of the petroleum products it consumes, despite holding vast crude oil reserves.
However, analysts also warn that expanding into East Africa could present fresh political and logistical challenges for Dangote Group due to the region’s complex multi-country trade environment and regulatory systems.
Still, many see the move as part of a broader push toward African industrial self-sufficiency and regional economic integration, with energy infrastructure expected to play a central role in the continent’s future development.
