Another African country wants in on Dangote’s $16 billion refinery

The president of Rwanda, Paul Kagame, recently disclosed plans for his country to be a key stakeholder in the planned East African Dangote Refinery.

• Rwanda's President Paul Kagame announced interest in acquiring a stake in the planned Dangote Refinery in Lamu, Kenya.
• Preliminary discussions between Rwanda and the project's sponsors have begun, but details are still being worked out.
• Aliko Dangote is offering East African countries a 30% equity stake in the $16 billion refinery, with Kenya potentially taking 10%.
• The proposed Lamu refinery is expected to process up to 700,000 barrels of crude oil daily, serving regional markets including Kenya, Uganda, South Sudan, Rwanda, and Ethiopia.

The Rwandan head of state indicated that Kigali has initiated preliminary discussions regarding the potential acquisition of an equity stake in the proposed oil refinery in Lamu, Kenya, which is owned by Nigerian industrialist Aliko Dangote.

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He made this known during a press conference in the country’s capital, Kigali, on Monday, August 24, where he acknowledged that talks between Rwanda and the project's sponsors are in progress but are still in their early stages.

Kagame expressed Rwanda's desire to join the regional energy initiative by stating that the nation would welcome the chance to take part in an investment of this magnitude.

"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.

Last week, it was reported that Aliko Dangote is offering East African countries a 30% equity stake in a planned refinery in Kenya.

According to David Ndii, Kenya's economic adviser to President William Ruto of Kenya, the country might take a 10% interest worth around $500 million.

"The total for the region is about $1.5 billion," Ndii said during a capital markets seminar in Nairobi.

Planned Dangote Refinery in East Africa

Following the establishment of the 650,000-barrel-per-day Dangote Refinery in Lagos as an important source of refined fuel for Nigeria and global markets, Aliko Dangote in June announced that a new refinery would be built in East Africa.

Initially, Tanga in Tanzania was considered the best location for the new refinery as Dangote stated he would spearhead the project if partner countries provided the required support.

But by May, Kenya had emerged as Dangote's preferred pick for the $16 billion refinery project.

Mombasa was first chosen because of its deepwater port and convenient access to a large regional market.

However, weeks later, Dangote Group executive Edwin Devakumar said that Lamu was now the project's favored site.

The proposed Lamu refinery is expected to process up to 700,000 barrels of crude oil per day, making it comparable to Dangote's refinery in Lagos, Nigeria.

The project is being proposed as part of a larger energy and infrastructure development that may include ports and petrochemical plants.

Once operational, the refinery is anticipated to deliver petroleum products to Kenya and other regional markets such as Uganda, South Sudan, Rwanda, and Ethiopia.

Earlier this month, Dangote revealed that his organization is getting closer to breaking ground on the planned oil refinery, indicating that the long-awaited project might soon move from planning to building.