Dangote expands petroleum network across Africa, invests in pipelines and storage

The President and Chief Executive of Dangote Industries Limited, Aliko Dangote, has unveiled plans to establish an extensive petroleum distribution network across Africa, backed by investments in pipelines, storage facilities and strategic supply corridors.

The disclosure was contained in a statement issued by the Dangote Group on Wednesday, October 21, 2026.

Dangote said the Group was expanding its petroleum distribution infrastructure across East, Central and Southern Africa to address supply challenges, reduce logistical bottlenecks and strengthen the continent’s energy security.

He also called on African governments to protect domestic industries against unfair foreign competition, arguing that dependence on imported products could undermine local manufacturing and employment.

Dangote Expands Africa’s Petroleum Distribution Network

Speaking in a conversation with Financial Times journalist David Pilling, Dangote said the Group had acquired a 25% stake in a petroleum products pipeline network in Kenya and was pursuing additional infrastructure projects in Ethiopia, Cameroon and Namibia.

He described the expansion as part of a broader strategy to establish an integrated African energy supply system connecting major refining centres with markets that have historically depended on imported petroleum products and fragmented distribution networks.

• “We are very aggressive with that,” Dangote said when asked about the Group’s plans to develop depots, pipelines and other petroleum distribution infrastructure.
• “Just let me tell you, yesterday, with the support from the President of Kenya, we bought 25 per cent of the pipeline network for the distribution of petroleum products,” he said.

Dangote also outlined plans for a distribution corridor linking Djibouti with Addis Ababa, Ethiopia, including tank farms to support the storage and movement of petroleum products. He said another project in Cameroon was approaching completion, while Namibia had been identified as a strategic location for expansion into Southern Africa.

According to Dangote, Namibia’s maritime proximity to the Dangote Petroleum Refinery in Lagos would support an efficient supply route into the region.

• “From our refinery to Namibia is just about four days of steaming,” he said.

The Group plans to transport refined petroleum products from Lagos to Namibia for onward distribution to markets including Botswana and South Africa. Dangote also outlined a proposed corridor through Zimbabwe and Zambia, aimed at extending the network across multiple African markets.

Dangote Plans 700,000-Barrel Kenyan Refinery

Alongside its distribution infrastructure expansion, the Group plans to establish another refinery in Lamu, Kenya, with a proposed capacity of approximately 700,000 barrels per day.

Dangote said the investment was informed by East Africa’s industrial and mining activities, growing energy requirements and persistent challenges in accessing diesel and other petroleum products. He explained that the proposed refinery would source crude oil from different markets rather than depend exclusively on production from Uganda or Kenya.

• According to him, the selection of Lamu followed technical assessments of several potential locations, with deep-water access, marine facilities and sufficient water resources among the key considerations.
• Dangote said the investment decision was reached within four months, although he alleged that commercial interests had attempted to frustrate the project through legal proceedings shortly before its public unveiling. He maintained that the experience reflected the intense competition and commercial interests within the international petroleum industry.

Beyond energy infrastructure, Dangote called on African governments to protect domestic manufacturers from unfair foreign competition, arguing that unrestricted imports could undermine the continent’s industrial development.

• “If America is now saying, no, we are going to protect our industries, who are we in Africa not to protect our own industries?” he asked.

Dangote warned that allowing imported products to displace domestic manufacturing amounted to “exporting our jobs out of the continent, importing poverty into the continent.”

He also disclosed that the Group had budgeted approximately $50 billion for investments between 2026 and 2030, describing the programme as part of a broader effort to demonstrate Africa’s capacity to execute large-scale industrial projects.

Dangote Targets Africa’s Industrial Transformation

Dangote said the Group’s investments were intended not only to expand its operations but also to encourage other African entrepreneurs and investors to participate in the continent’s industrial transformation.

• He identified unreliable electricity supply as a major obstacle to industrialisation, particularly in mining and mineral processing, where inadequate power can limit countries’ ability to process natural resources locally before exporting them.
• Dangote said approximately 650 million Africans lacked access to electricity, stressing that addressing the challenge would create opportunities for manufacturing, employment and economic diversification.

He expressed confidence that African governments and entrepreneurs were increasingly recognising the need to take responsibility for the continent’s industrial future.