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Tanzanian billionaire Mohammed Dewji has expressed interest in investing $100 million in Aliko Dangote’s proposed oil refinery in Kenya, a project expected to become one of Africa’s largest refining facilities as the Nigerian industrialist expands his footprint across East Africa.
The investment interest was disclosed by Dewji during an interview on Thursday, according to a Bloomberg report, in which he outlined his willingness to participate in the multi-billion-dollar refinery project despite his preference for Tanzania as the host country.
The pledge comes just three days after Nairametrics reported that the proposed refinery to be developed by the Dangote Group on Kenya’s coast is expected to cost about $17 billion and take approximately five years to complete.
What they are saying
Although Dewji said he would have preferred the refinery to be built in Tanzania, he indicated that he remains open to investing in the project if it ultimately proceeds in Kenya, stating, “I would lean more toward Tanzania than in Kenya.”
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He also revealed that discussions with Dangote are yet to begin, but said he intends to initiate talks on participating in the refinery project. “Definitely reach out to him and we can chat about it,” Dewji said.
The interest comes as the Dangote Group continues to receive approaches from prospective investors.
Get up to speed
The refinery was initially expected to be located in Tanga, Tanzania, before Dangote shifted the proposed site to Lamu, a coastal town in southeastern Kenya. According to the billionaire industrialist, the Kenyan location was selected for commercial and technical reasons.
Despite relocating the refinery project to Kenya, the Dangote Group is significantly expanding its investments in Tanzania.
- On June 30, Nairametrics reported that Dangote plans a series of large-scale infrastructure projects in the East African country, including the construction of a new seaport, a 2,000-megawatt coal-fired power plant, and a 40-kilometre concrete access road to improve connectivity to the port.
The expansion strategy also includes plans to establish a special economic and trade zone, develop a urea fertiliser plant, and build transport infrastructure linking the Indian Ocean port city of Mtwara with Mbamba Bay on Lake Malawi in southern Tanzania, further strengthening the group’s industrial presence in the region.
What you should know
The proposed refinery in Kenya, which is expected to mirror the Dangote Refinery in Lagos, is projected to cost about $17 billion and require roughly five years to complete. Once operational, it would become one of the largest refineries on the African continent and significantly expand regional refining capacity.
- As Dangote accelerates its expansion into East Africa, the billionaire is also investing heavily in expanding his refining operations in Nigeria.
- The Lagos refinery currently processes about 650,000 barrels of crude oil per day, but the Dangote Group plans to increase capacity to approximately 1.4 million barrels per day over the next few years, a move that would rank the facility among the world’s largest refining complexes.
To support the next phase of expansion, the African Export-Import Bank (Afreximbank) is providing $2.5 billion as part of a broader $4 billion syndicated loan arranged to finance the project. The group has also strengthened construction activities by signing a $400 million agreement with Chinese equipment manufacturer XCMG Construction Machinery, aimed at accelerating development across the refinery complex.
