By Spy Uganda
East Africa is moving closer to a major energy and industrial milestone following high-level talks between William Ruto, Yoweri Museveni, and African industrialist Aliko Dangote over plans to establish a large-scale oil refinery in Tanzania.
The proposed refinery, to be located in Tanga, is expected to process crude oil from multiple East African countries including Uganda, Kenya, South Sudan, and the Democratic Republic of Congo. If realized, the facility would significantly reduce the region’s dependence on imported refined petroleum products and position East Africa as a key energy hub.
Dangote, speaking in Nairobi at a summit hosted by the Africa Finance Corporation, pledged to construct a refinery comparable in scale to his 650,000 barrels-per-day plant in Nigeria, the largest in Africa. He said the project could proceed within four to five years if it receives firm political backing.
“I can give commitment to the two presidents that are here. If they support the refinery, we will build an identical one,” Dangote told delegates.
The initiative comes at a time when global supply disruptions have exposed Africa’s vulnerability to fuel shortages. Recent tensions in the Middle East, particularly around key shipping routes such as the Strait of Hormuz, have heightened concerns about the continent’s reliance on imported fuel.
According to a new AFC report, Africa imports more than 70 percent of its refined fuel and spends about $230 billion annually on essential imports, including petroleum products, fertilizers, and industrial goods. Demand for fuel is projected to rise from 74 million tonnes in 2023 to 86 million tonnes by 2040, underscoring the urgency of expanding local refining capacity.
President Ruto emphasized that Africa’s continued export of raw materials, coupled with its dependence on imported finished goods, has constrained economic growth. He noted that while the continent produces about 10 million barrels of crude oil per day, it captures only a fraction of the potential value.
“If refined locally, Africa’s crude could generate over $500 billion annually, compared to about $270 billion from raw exports,” Ruto said, adding that the continent loses an estimated $230 billion each year in unrealized value.
President Museveni indicated that Uganda is ready to contribute crude oil to the proposed refinery, including volumes transported via the East African Crude Oil Pipeline. He argued that refining oil within the region would be more economically beneficial than exporting it for processing abroad.
In parallel, Uganda is advancing plans for its own 60,000-barrel-per-day refinery in Hoima, in partnership with Alpha MBM Investments of the United Arab Emirates and the Uganda National Oil Company.
Experts at the summit stressed that addressing Africa’s energy deficit will require both new infrastructure and better utilization of existing assets. AFC Chief Economist Rita Babihuga-Nsanze highlighted inefficiencies across the continent, including underutilized energy capacity and supply chain gaps in key sectors such as fertilizers.
The Nairobi summit, held under the theme “Infrastructure as the Engine of Industrialisation,” has brought together policymakers, investors, and industry leaders to accelerate Africa’s transition from raw material exporter to industrial powerhouse.
If implemented, the Tanga refinery could mark a turning point in that journey, strengthening regional integration, enhancing energy security, and unlocking new economic opportunities across East Africa.
