Dangote predicts Africa will largely meet fuel needs locally by 2030

Aliko Dangote has predicted that Africa will largely meet its refined-fuel needs locally by 2030 as he prepares to begin a $16bn refinery project on Kenya’s coast. The Dangote Group president is expected to break ground on the planned facility in Lamu on Wednesday. The refinery is designed to process 700,000 barrels of crude oil a day and is expected to take about 30 months to complete.

Speaking to reporters in Nairobi, Dangote said the project formed part of an effort to move Africa away from exporting raw materials and importing finished products. He said fuel should be refined on the continent, regardless of where the crude originated. The Kenyan project faces a land-rights court case and opposition from Greenpeace and others over its environmental impact.

Dangote dismissed concerns about such cases and said the refinery would source crude from multiple locations, including the Middle East and the United States. He said the plant would also be able to process crude from African producers as Kenya, Tanzania and Mozambique increase production. Dangote described the planned capacity as large for the region but small compared with the demand expected from Africa’s growing economy.

He said the refinery was only the beginning of further industrial development around the site. Dangote argued that exporting raw materials at a fraction of their eventual value costs Africa jobs, while importing finished goods leaves the continent with fewer economic benefits. The source material does not provide details of the project’s financing, construction partners or the outcome of the reported court case.