Africa's Richest Man Commits to Building Major Oil Refinery in Tanzania Within Five Years
Dar es Salaam, 23 April 2026
Aliko Dangote has pledged to construct an identical replica of his successful Nigerian facility in Tanzania, promising completion within four to five years. The ambitious project will process crude from the Democratic Republic of Congo and South Sudan, connecting to a 1,443-kilometre pipeline from Uganda’s oil fields to Tanzania’s Tanga harbour. This strategic investment addresses Africa’s heavy reliance on Middle Eastern fuel imports, particularly relevant given current Iranian conflicts affecting global supply chains.
Presidential Summit Announces Strategic Partnership
The commitment emerged during an Africa Finance Corporation summit in Nairobi on Thursday, where Kenyan President William Ruto announced that the project will include a pipeline linking Mombasa to Tanga in northeastern Tanzania [1]. Dangote addressed both Ruto and his Ugandan counterpart directly, stating: “I can give commitment to the two presidents that were here, if they will support the refinery, we’ll build the identical one that we have in Nigeria” [1]. The industrialist’s pledge represents a concrete response to East Africa’s strategic vulnerability, with some eastern and southern African nations sourcing three-quarters or more of their fuel imports from the Middle East [1].
Nigerian Success Story Provides Blueprint
Dangote’s confidence stems from the remarkable success of his Nigerian facility, which boasts a 650,000 barrels-per-day capacity and reached full operational capacity just weeks before the current Iranian conflict began affecting global supply chains [1]. The Lagos refinery has already transformed Nigeria into a fuel self-sufficient nation and is now shipping products as far as Tanzania whilst sending record volumes of jet fuel to European markets [1]. This success comes against a backdrop of declining African refining capacity, which had shrunk by approximately one-third over the past two decades before Dangote’s intervention [1]. Despite Africa producing about 7% of global crude output, the continent’s limited refining infrastructure has perpetuated dependence on imported refined products [1].
Ambitious Expansion Plans Take Shape
The Tanzania project forms part of Dangote’s broader $40 billion expansion programme aimed at more than doubling capacity at the Lagos plant [1]. Meanwhile, Uganda will retain its separate plan for a 60,000 barrels-per-day refinery designed for domestic consumption and supply near the Kenya-Tanzania border [1]. The regional refining landscape is witnessing renewed interest, with Mozambique attracting interest from Benedict Peters for a proposed 200,000 barrels-per-day facility [1]. Current market conditions underscore the urgency of these developments, with Brent futures climbing 2.3% to $97.68 per barrel on 21st April 2026, as markets factored in uncertainty over Iran’s participation in scheduled diplomatic talks [2].
Economic Impact and Regional Integration
The Tanga refinery will serve as the endpoint for a 1,443-kilometre pipeline connecting to Uganda’s oil fields, with Uganda contributing crude to the facility alongside supplies from the Democratic Republic of Congo and South Sudan [1]. This infrastructure development promises to reshape East African energy security whilst creating substantial employment opportunities across multiple nations. The timing proves particularly strategic given recent market volatility, with lithium prices rising 40% year-to-date to $21,452 per tonne in April 2026, driven partly by higher logistics costs linked to US-Iran tensions [2]. Kenya has recently renewed supply deals with Saudi Aramco, Abu Dhabi National Oil Company, and Emirates National Oil Company, highlighting the region’s continued reliance on Middle Eastern suppliers that the new refinery aims to reduce [1].