Oil & Gas

Aliko Dangote is expanding his investments in East Africa through two major energy infrastructure projects: a proposed oil refinery in Kenya and a petroleum-products pipeline connecting Ethiopia and Djibouti. The initiatives aim to strengthen regional energy security, improve fuel distribution and reduce dependence on costly petroleum imports and transportation networks.

The projects also reflect Dangote’s broader strategy of investing in infrastructure that supports Africa’s industrialisation and economic growth.

In Kenya, the proposed Dangote East Africa Petroleum Refinery is planned for Lamu County, with an estimated investment of $16 billion and a processing capacity of 700,000 barrels of crude oil per day. The project was officially launched on September 30, 2026, with construction expected to take approximately 40 months. Once operational, the refinery is expected to supply petroleum products to Kenya and neighbouring countries, create employment opportunities and strengthen the region’s capacity to process crude oil locally. However, land ownership disputes and environmental concerns could present challenges to its implementation.

Meanwhile, Dangote Group is partnering with Ethiopian Investment Holdings and other stakeholders to develop a $660 million petroleum-products pipeline linking Damerjog in Djibouti to Dewele in Ethiopia.

The proposed pipeline will extend approximately 120 kilometres and include storage facilities with capacities of around 375,000 cubic metres in Djibouti and 800,000 cubic metres in Ethiopia. The project is intended to improve the transportation of fuel from Djibouti’s coastal facilities into Ethiopia, reducing logistics costs, limiting supply disruptions and supporting the country’s growing demand for petroleum products.

Together, the two projects could transform aspects of East Africa’s petroleum supply chain by combining expanded refining capacity with improved fuel transportation and storage infrastructure. The refinery could supply finished petroleum products to regional markets, while the pipeline would strengthen distribution networks in the Horn of Africa.

These investments have the potential to stimulate industrial development, create jobs and increase cross-border trade. However, their success will depend on financing, construction progress, regulatory approvals and the effective management of environmental and land-related concerns.