Dangote says Africa could largely meet its fuel needs by 2030

Businessman Aliko Dangote has said Africa could largely supply its own refined-fuel requirements by 2030 as preparations advance for a planned refinery on Kenya’s coast. Dangote is expected to break ground on the project at Lamu on Wednesday. The refinery is planned to have a capacity of 700,000 barrels per day and is expected to take about 30 months to build.

Speaking to reporters in Nairobi, Dangote said the project formed part of a broader effort to move Africa from exporting raw materials to producing finished goods. He said the location of refining was less important than ensuring that refining took place on the continent. He dismissed concerns over the project’s legal and environmental challenges.

The development faces a land-rights court case and opposition from Greenpeace and others over its potential environmental impact. Dangote said such cases did not represent an insurmountable problem. Questions have also been raised about where the refinery would obtain crude, since East African countries are only beginning to develop significant reserves.

Dangote said supplies could come from several sources, including the Middle East and the United States, while the refinery could later use production from countries such as Kenya, Tanzania and Mozambique. He described the 700,000-barrel facility as large for the region but small relative to future demand. He said it would be the beginning of wider industrial development around the refinery.

Dangote argued that Africa loses economic value by selling raw materials cheaply and importing finished products. In his view, local processing would help retain wealth and employment on the continent.