Nigerian billionaire Aliko Dangote and Kenyan President William Ruto will break ground on Wednesday to begin construction of a $16 billion oil refinery aimed at meeting growing demand for petroleum products across East Africa.
Dangote wants to replicate his group’s 700 000 barrel per day Nigerian refinery as countries including Kenya and Uganda look to start producing crude oil.
The Kenyan plant is slated to be completed in 2030, with the aim of lowering the region’s fuel costs and saving hard currency used to import refined products.
“When you look at East Africa, not only East Africa, most of all the 54 countries in Africa, they import petroleum products,” Dangote told reporters in Nairobi on Tuesday.
“What we are trying to do is to make sure that we become self-sufficient in whatever we consume.”
Dangote has offered regional governments a combined 30% stake in the refinery.
Annual demand for petroleum products in the region is estimated at 20 million to 30 million metric tons, said David Ndii, Chief Economic adviser to Ruto.
–Reuters–
