Africa will largely end fuel imports by 2030 – Dangote

Nigerian businessman and industrialist Aliko Dangote has projected that most African countries will be able to meet their fuel needs through local refining by 2030.

Dangote made the projection in Nairobi as he prepares to commence construction of a $16 billion refinery project on Kenya’s coast.

The proposed refinery, located in Lamu, is expected to have a refining capacity of 700,000 barrels per day, with construction projected to take about 30 months.

Speaking to reporters in Nairobi, Dangote said the project forms part of a broader effort to reduce Africa’s dependence on exporting raw materials while importing 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 about when Africa could end its dependence on fuel imports from outside the continent.

Dangote also dismissed concerns surrounding the Kenyan project, which has faced a land rights case and opposition from environmental groups, including Greenpeace, over its potential environmental impact.

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

Refinery to Source Crude From Multiple Markets

Questions have also been raised about the source of crude oil for the proposed refinery, particularly as East African countries are still developing their oil-producing capacity.

Dangote said the refinery would source crude from different markets, including the Middle East and the United States. He added that the facility would also be positioned to process crude from African producers as countries such as Kenya, Tanzania and Mozambique expand their oil production.

“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, while also referring to US President Donald Trump’s threats to halt diesel exports.

Dangote said the planned 700,000-barrel-per-day facility should be viewed as an initial step rather than a complete solution to Africa’s growing energy needs.

“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.

Dangote Calls for More Value Addition in Africa

The businessman identified Africa’s continued reliance on exporting raw materials and importing finished products as a major economic challenge.

He argued that processing more resources locally would help retain greater economic value and create employment opportunities within the continent.

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

This report was adapted from a report originally published by PUNCHNG.COM