Five African heads of state inaugurated a $16 billion oil refinery project in East Africa on Wednesday, marking the start of construction in Lamu. The refinery, expected to be completed in 40 months, will have a capacity to process 700,000 barrels of oil per day, aiming to boost the region's self-sufficiency in refining raw materials, according to fortune.com.
Kenya’s President William Ruto, along with leaders from Uganda, Ethiopia, Togo, Benin, and Nigeria’s former President Olusegun Obasanjo, participated in the groundbreaking ceremony. Nigerian billionaire Aliko Dangote, whose Dangote Group will oversee construction and holds stakes in the project, emphasized the need for Africa to industrialize itself by refining locally rather than exporting raw materials and importing finished products. Uganda’s President Yoweri Museveni noted that Uganda will continue plans for its own smaller refinery, highlighting the regional demand for multiple refining facilities.
The refinery is designed to process oil sourced from neighboring countries, addressing the regional consumption that exceeds the refinery's capacity. This project is one of the largest investments in East Africa's energy infrastructure and reflects a broader push across the continent to increase value addition within Africa. The refinery is expected to reduce dependence on imported refined products and support economic growth by creating jobs and fostering industrial development.
Construction is scheduled to be completed within 40 months, with the refinery set to process 700,000 barrels per day upon completion. The project is a key milestone in East Africa’s energy sector, with Dangote Group leading the construction efforts and multiple heads of state actively supporting the initiative.