Africa Will Be Mostly Self-Sufficient In Fuel By 2030 — Dangote

Oil tycoon Aliko Dangote said on Tuesday that Africa would largely supply its own refined fuel needs by 2030 as he prepared to launch a $16 billion refinery on the Kenyan coast.

Dangote will break ground on the East African oil refinery, with a planned capacity of 700,000 barrels per day, on Wednesday. It is expected to take around 30 months to build.

Speaking to reporters in Nairobi, Africa’s richest man said he saw it as part of efforts to stop the continent exporting raw materials and start selling finished products.

“By 2030, the majority of African countries will be self-sufficient. It does not matter where it is refined, but it should be in the African continent, on the soil of Africa,” he said in response to a question from AFP on when Africa would no longer need to import fuel from elsewhere.

He dismissed concerns about the Kenyan project, which is being built at Lamu on the picturesque Indian Ocean coast, and already faces a land rights court case, and opposition from Greenpeace and others over its environmental impact.

“There’s actually no problem with these sort of cases,” Dangote said. “There are people who don’t want the development of Africa.”

‘Just the start’

There have been questions about where the new refinery will source the crude oil to refine, given that east African countries are only just starting to find and exploit significant reserves.

Dangote said it would source crude from multiple places, including the Middle East, the United States, and others — and would be ready as countries like Kenya, Tanzania and Mozambique start producing more.

“Are we going to wait until (Africa has) one quarter of the world’s population before we start thinking of what to do? We have to start addressing that issue today,” he said, highlighting US President Donald Trump’s threats to stop exporting diesel.

He insisted the Kenyan refinery would be just a small part of meeting the demand that Africa will create as its economy grows.

“When you talk about 700,000 barrels per day, it’s actually small. For the region, it’s a big refinery, it’s a big investment, but it is a start-up,” he said.

“This refinery is not all we are going to do there. It’s just the start… You will see the number of industries that will come around the refinery,” Dangote added.

He sees the biggest challenge facing Africa as the need to stop exporting raw materials and start creating finished products that keep the wealth on the continent.

“The biggest problem is that we export raw materials at maybe 5 to 10 percent of its value, and then we end up buying at 100 percent of its value,” he said.

“We are exporting jobs, because when we keep exporting raw materials, you are creating jobs out there. And when you buy finished products from them… you are importing poverty, because you are not actually creating any jobs here.”