Dangote seeks regional partnership for $17 billion oil refinery project

The proposed refinery is estimated to cost about $17 billion.

Under the partnership model, the Tanzanian government and other East African nations would participate through shareholding arrangements, accordingly to a State House statement that was availed to the media in Dar es Salaam on Saturday, May 16, 2026.

The approach aims to strengthen Africa’s internal capacity for petroleum production and reduce the region’s exposure to global oil price volatility and supply chain disruptions.

Growing confidence in Tanzania

The proposal comes at a time when relations between the Dangote Group and the Tanzanian government have strengthened significantly, according to a statement, signed by Acting Director of Presidential Communications, Mr Shaaban Kissu.

During the talks, Mr Dangote commended President Hassan’s administration for improving the business and investment climate.

He cited government efforts to resolve operational challenges at the Group’s cement plant in Mtwara as a key factor behind increased productivity and efficiency.

Available figures show that the Mtwara plant is expected to produce about 2.8 million tonnes of cement this year, close to its annual target of 3.2 million tonnes.

The progress, according to Mr Dangote, has reinforced Tanzania’s position as one of the Group’s strategic investment destinations in Africa.

The company has also deployed 400 natural gas-powered lorries in Tanzania and plans to convert its entire fleet of 700 lorries to alternative energy in a bid to reduce costs and improve efficiency.

Regional energy ambitions

The refinery proposal aligns with recent regional discussions on energy security within the East African Community (EAC).

The development follows recent talks between Mr Dangote and Kenya's President William Ruto, as East African leaders push for home-grown solutions to the region’s energy demands.

The proposed 650,000-barrel-per-day refinery also comes as Tanzania and Uganda move closer to completing the East African Crude Oil Pipeline (EACOP), which will transport crude oil from Uganda’s Hoima oilfields to the Chongoleani Peninsula in Tanga.

The EACOP is owned by four entities: TotalEnergies with 62 percent, Tanzania Petroleum Development Corporation and Uganda National Oil Company with 15 percent each, while China National Offshore Oil Corporation holds 8 percent.

During the meeting at State House, Mr Dangote said the refinery project was intended to reduce Africa’s dependence on imported fuel products.

President Hassan welcomed the initiative and encouraged the Dangote Group to explore additional investments in Tanzania, including fertiliser production to address growing domestic demand.

If implemented, the $17 billion refinery would rank among the largest industrial investments in East Africa’s history.

The partnership model is intended to ensure that both the economic gains and strategic control of energy resources remain within the region.