Kenyan President William Ruto and the President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, yesterday joined other African leaders to break ground for a $16 billion petroleum refinery and petrochemicals complex in Lamu, Kenya.
The Dangote East Africa Petroleum Refinery and Petrochemicals is designed to process 700,000 barrels of crude oil per day and serve markets across Eastern Africa.
Dangote said the project would be completed within 40 months, adding that the company had commenced mobilisation of equipment and technical resources for the development.
He said the project would draw on lessons learnt from the Dangote Petroleum Refinery in Lagos.
According to him, 30 per cent equity in the refinery would be offered to East African countries, providing an opportunity for regional ownership and strengthening energy security while retaining more wealth within the continent.
Kenya and Rwanda have already indicated interest in taking up the equity offer.
The refinery is expected to serve Kenya, Uganda, Rwanda, Tanzania, Ethiopia, South Sudan, the Democratic Republic of Congo and other markets across the region.
“This refinery is therefore not simply about one country. It is about a region,” Dangote said.
Ruto described the project, valued at about KSh2 trillion, as a “generational undertaking” for Kenya and the wider East African region.
The integrated complex is also expected to generate up to 1,000 megawatts of electricity and produce polypropylene and base oil.
The Kenyan president said current projections indicate that the project could create about 60,000 direct and indirect jobs, while the construction phase alone is expected to inject more than KSh2 billion monthly in wages into the economy.
He directed technical institutions and universities to prepare welders, technicians, engineers and managers for the opportunities that would arise from the project.
Ruto also stressed that young people from Lamu and neighbouring communities must have a fair opportunity to compete for jobs and other benefits from the project.
Dangote said qualified graduates from Lamu would be given opportunities in the development, while more than 1,000 youths from host communities would receive technical and vocational training at a school to be established by the Dangote Group.
“We want young Kenyans and East Africans with skills here. We want local businesses to become suppliers. We want entrepreneurs around this project,” he said.
He said the success of the refinery would not be measured only by the height of its towers or the volume of crude oil processed, but also by the skills acquired by young Kenyans, the businesses created by local entrepreneurs and the livelihoods improved in host communities.
“Industrialisation must have a human face. It must create dignity. It must create jobs. It must create opportunities. It must create hope,” Dangote said.
The industrialist said Africa could no longer afford to export crude oil, minerals and agricultural commodities while importing finished products derived from them.
“We must retain more value here at home in Africa,” he said.
Governor of Lamu County, Issa Timamy, criticised attempts to halt the project through litigation, saying those who approached the courts did not represent the aspirations of the people of Lamu.
He said the project would proceed, while emphasising the need to protect the area’s mangroves, fishing grounds, coastline and cultural heritage.
Former Nigerian President Olusegun Obasanjo, who joined other African leaders at the ceremony, commended Dangote for emerging as a major champion of industrialisation.
Obasanjo recalled Dangote’s transition from trading and importation into large-scale manufacturing, saying governments must create an enabling environment for indigenous entrepreneurs to invest and compete at scale.
Ugandan President Yoweri Museveni said Africa could not continue exporting raw materials while allowing the jobs and wealth associated with processing to be created elsewhere.
He also backed the proposal for regional ownership of the refinery, describing it as an opportunity for East African countries to participate as owners rather than merely consumers.
Ethiopian Prime Minister Abiy Ahmed said the refinery would contribute to strengthening energy security across East Africa.
“East Africa is not only a market. It is a place to produce, to build and to create value,” he said.
