Another African Nation Seeks Supply Agreements with Dangote’s $16 Billion Refinery
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| Paul Kagame (President of Rwanda) |
Rwandan President Paul Kagame has revealed that Kigali is in preliminary discussions to secure an equity stake in the proposed East African Dangote Refinery in Lamu, Kenya.
Speaking at a press conference in Kigali on Monday, August 24, Kagame confirmed that while negotiations with the project’s sponsors remain in their early stages, Rwanda is eager to participate in a regional energy infrastructure investment of this scale.
Initiated by Nigerian industrialist Aliko Dangote, the $16 billion facility is designed to process up to 700,000 barrels of crude oil daily. The project is positioned to supply key regional markets, including Kenya, Uganda, South Sudan, Rwanda, and Ethiopia. As part of the development framework, Dangote has offered a collective 30% equity stake to East African nations, with host country Kenya slated to acquire 10%.
"In a way, there has been. But it is too early to talk about the details because I think it is work in progress. Things are still being thought out," Kagame said.
"What I can say is that Rwanda would be very happy to be part of that kind of investment," Kagame added, as seen on AllAfrica.
The Dangote Group has offered East African nations a combined 30% equity stake in its proposed refinery project in Kenya. According to David Ndii, Chief Economic Adviser to Kenyan President William Ruto, Kenya is considering acquiring a 10% shareholding valued at approximately $500 million.
"The total for the region is about $1.5 billion," Ndii said during a capital markets seminar in Nairobi.
Following the successful launch of the 650,000-barrel-per-day Lagos facility, Aliko Dangote announced plans to construct a second major refinery in East Africa. While initial evaluations considered Tanga, Tanzania, Kenya has emerged as the preferred destination for the $16 billion project.
Although Mombasa was initially selected for its deepwater port and market access, the Dangote Group subsequently shifted its focus to Lamu as the primary location. The proposed megaproject is designed to process up to 700,000 barrels of crude oil daily—exceeding the capacity of the Lagos plant—and forms part of a broader infrastructure development incorporating ports and integrated petrochemical facilities.
Once operational, the refinery will serve as a crucial energy hub, supplying petroleum products across East Africa, including Kenya, Uganda, South Sudan, Rwanda, and Ethiopia. Recent updates from the Dangote Group indicate that the project is nearing site groundbreaking, marking a key transition from initial design to active development.
