Nigerian industrialist Aliko Dangote has extended his business interests into East Africa with the commencement of a $16 billion oil refinery project in Lamu, Kenya.
The refinery, with a planned capacity of 700,000 barrels per day, is expected to supply petrol, diesel and aviation fuel to Kenya and other markets across the region when completed in 2030.
Dangote and Kenyan President William Ruto broke ground for the project in Lamu on Wednesday, September 30.
Voice of Nigeria reports that the development comes as Nigeria marks its 66th Independence Anniversary, highlighting the growing participation of Nigerian businesses in Africa’s wider industrial and economic development.
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The planned facility will have the same production capacity as Dangote’s refinery in Lagos, Nigeria, and is expected to contribute to efforts to reduce East Africa’s reliance on imported refined petroleum products.
Regional governments are expected to hold a combined 30 per cent stake in the investment, while the project forms part of a broader industrial development planned for Lamu.
According to Kenya’s Ministry of Information, “Communications and the Digital Economy, the wider development will include a 1,000-megawatt power plant, as well as fertiliser and chemical manufacturing facilities.”
The Kenyan Government said; “the investment is expected to support industrial growth, create employment, strengthen local skills and generate additional economic opportunities, particularly for young people.”
LAPSSET
The refinery is also ‘expected to add to the economic activities around the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor, a major regional infrastructure route linking Kenya with neighbouring countries.’
The groundbreaking ceremony brought together several African leaders and senior officials, including President Ruto, former Nigerian President Olusegun Obasanjo, Ugandan President Yoweri Museveni, Ethiopian Prime Minister Abiy Ahmed, Benin’s President Romuald Wadagni and Togo’s President Jean-Lucien Savi de Tové.
For Nigeria, the project provides another example of a Nigerian-owned company taking its industrial expertise and investment beyond the country’s borders.
Major investment
Dangote’s expansion into Kenya follows his group’s major investment in Nigeria’s petroleum sector, where its 700,000-barrel-per-day refinery has become a significant part of the country’s refining capacity.
The Lamu project is therefore positioned as part of a broader continental business footprint, with the planned refinery targeting energy supply and industrial opportunities in East Africa.
The project is expected to serve Kenya and other regional markets, while President Ruto has linked the investment to energy security, industrialisation and regional economic integration.
As Nigeria celebrates 66 years of independence, the Lamu development places the activities of one of the country’s largest private-sector groups within the wider story of African investment, industrialisation and economic cooperation.
The project also underscores the increasing movement of Nigerian capital and enterprise across the continent, with its success likely to be closely watched as construction progresses towards the planned 2030 completion.
