LAGOS, Nigeria — Dangote Industries Limited has unveiled an ambitious $50 billion investment programme spanning Africa between 2026 and 2030, with plans to expand its refining capacity, petroleum distribution infrastructure and industrial operations across the continent.
As part of the expansion drive, the conglomerate has acquired a 25 per cent stake in Kenya’s petroleum pipeline network and is pursuing plans to establish a refinery with a proposed capacity of 700,000 barrels per day in Lamu, Kenya.
The Group is also developing petroleum storage and distribution infrastructure in Djibouti, Cameroon and Namibia as it seeks to build an integrated energy supply network linking major refining centres with markets across East, Central and Southern Africa.
President and Chief Executive of Dangote Industries Limited, Aliko Dangote, disclosed the investment plans during an interview with Financial Times journalist David Pilling.
Dangote said the Kenyan pipeline investment was concluded with the support of the country’s government, describing the acquisition as a significant step towards improving the transportation and distribution of petroleum products across East Africa.
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“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.
Although the financial terms of the acquisition were not disclosed, Dangote indicated that the Group was moving aggressively to secure the infrastructure needed to strengthen its presence in key African petroleum markets.
“We are very aggressive with that,” he said when asked about investments in petroleum depots, pipelines and other logistics facilities.
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Dangote Expands Petroleum Distribution Across Africa
The planned expansion will see Dangote Industries develop strategic storage facilities, tank farms and distribution corridors to facilitate the movement of refined petroleum products across several African markets.
In East Africa, the Group is developing a petroleum distribution corridor between Djibouti and Addis Ababa, Ethiopia. The project is expected to be supported by storage terminals and tank farms designed to improve the availability and movement of petroleum products.
Another petroleum infrastructure project in Cameroon is reportedly nearing completion, while Namibia has emerged as a strategic entry point into Southern Africa.
Dangote explained that Namibia’s geographical position and maritime connectivity made it an attractive destination for petroleum products from the Group’s refinery in Lagos.
“From our refinery to Namibia is just about four days of steaming,” he said.
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According to him, petroleum products shipped from Nigeria to Namibia could subsequently be distributed to Botswana and South Africa, with additional supply routes being considered for Zimbabwe and Zambia.
The proposed network is intended to connect refining facilities with regional markets that rely heavily on imported petroleum products, while addressing logistical inefficiencies that can increase transportation costs and disrupt supply.
If successfully implemented, the investments could strengthen cross-border petroleum trade, improve access to refined products and position Dangote Industries as a major supplier in several African energy markets.
Proposed 700,000-Barrel-Per-Day Refinery in Kenya
Beyond petroleum distribution, Dangote disclosed plans to establish a major refinery in Lamu, Kenya, with a projected processing capacity of approximately 700,000 barrels of crude oil per day.
The proposed facility would represent a significant expansion of the Group’s refining ambitions beyond Nigeria and could transform the regional petroleum supply landscape if the project secures the necessary approvals, financing and infrastructure.
Dangote said the decision to select Lamu followed technical assessments of its deep-water access, marine infrastructure and the availability of essential resources required for large-scale refining operations.
He also explained that the refinery would source crude oil from international markets rather than depend exclusively on production from Kenya or neighbouring Uganda.
The investment is being driven by expectations of growing petroleum demand across East Africa, supported by expanding economies, increasing industrial activity and rising mining operations.
Dangote said the decision to pursue the project was reached within four months. He also alleged that vested commercial interests had attempted to frustrate the proposal through legal proceedings shortly before its announcement.
The proposed refinery would complement the Group’s existing refining operations in Nigeria and its planned distribution network across the continent. However, its eventual development will depend on project execution, regulatory approvals, funding arrangements and the availability of supporting infrastructure.
$50bn Investment Programme Targets Industrialization
Dangote said the broader $50 billion investment programme for 2026–2030 was designed not only to expand his conglomerate’s commercial operations but also to demonstrate the capacity of African businesses to undertake large-scale industrial projects.
He argued that Africa’s long-term economic transformation would depend on stronger domestic manufacturing, reliable infrastructure and policies that encourage local production.
“The legacy we are trying to set up is how do we industrialize our continent?” he said.
The programme reflects an ambition to build interconnected industrial and energy infrastructure capable of supporting manufacturing, trade and economic diversification across multiple African countries.
Dangote maintained that Africa’s dependence on imported manufactured goods had weakened domestic industries, limited employment opportunities and increased pressure on local businesses.
He urged governments to protect domestic manufacturers against unfair competition from imported products, arguing that industrial development required policies that support local production while enabling African businesses to compete effectively.
“Allowing imports to displace local production means we are exporting our jobs out of the continent and importing poverty into the continent,” he said.
He also questioned why African countries should avoid protective industrial policies when advanced economies were increasingly taking measures to support their own industries.
“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.
His comments highlight the continuing debate over how African governments can balance support for domestic manufacturing with competition, consumer interests and access to affordable imported goods.
Electricity Deficit Remains a Major Challenge
Despite Africa’s abundant natural resources, Dangote identified inadequate electricity supply, weak financial systems and poorly developed industrial policies as major obstacles to the continent’s economic progress.
He stressed that reliable electricity was essential for manufacturing, mining and mineral processing, particularly as African economies seek to move beyond exporting raw materials towards producing finished goods.
Dangote expressed concern that an estimated 650 million Africans still lacked access to electricity, arguing that the deficit continued to constrain economic activity and limit opportunities for industrial development.
He maintained that addressing the electricity challenge would help stimulate investment, create jobs, improve productivity and support the development of industries capable of adding value to Africa’s natural resources.
For the continent to realize its economic potential, he said, governments must create an enabling environment for private investment, strengthen infrastructure and develop policies that encourage long-term industrial growth.
What the Expansion Could Mean for Africa
Dangote’s proposed investments could have far-reaching implications for Africa’s energy and industrial sectors if the projects are delivered as planned.
The development of petroleum storage facilities, pipeline interests and regional distribution corridors could improve the movement of refined products between markets, potentially reducing some supply bottlenecks and strengthening energy security.
The proposed Kenyan refinery could also expand regional refining capacity, although its ultimate impact would depend on its financing, construction timeline, operating costs and access to crude oil and markets.
For Nigeria, the expansion could create opportunities to increase petroleum exports, strengthen the country’s position as a regional energy supplier and generate additional demand for maritime transport and related services.
However, the scale of the programme also presents significant challenges. Large refinery and pipeline projects require substantial capital, complex regulatory approvals, environmental assessments and cooperation between governments and private-sector operators.
The success of the $50 billion investment programme will therefore depend on Dangote Industries’ ability to translate its ambitions into completed projects, sustainable operations and commercially viable distribution networks.
Ultimately, Dangote said his broader objective was to encourage African entrepreneurs to pursue ambitious industrial ventures capable of transforming the continent’s economy.
“The journey has started,” he declared. “But now we’re awake, and we will make it happen.”
