Rwanda eyes stake in Dangote’s $16 billion East Africa refinery

• President Paul Kagame says Rwanda is interested in investing in Aliko Dangote’s proposed $16 billion oil refinery in East Africa.

• Kagame confirmed that discussions have taken place but said negotiations remain at an early stage.

• The planned Lamu refinery could process about 700,000 barrels of crude oil per day, potentially making it one of Africa’s largest.

• The project could strengthen East Africa’s refining capacity and reduce the region’s reliance on imported petroleum products.

Clarivox News - Rwanda is considering taking a stake in a proposed $16 billion oil refinery backed by Nigerian billionaire Aliko Dangote in East Africa, President Paul Kagame has said, signalling Kigali’s interest in a project that could reshape the region’s fuel supply market.

Speaking at a press conference in Kigali on Monday, Kagame confirmed that discussions had taken place over Rwanda’s potential participation, although negotiations remained at an early stage.

“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,” he added.

His comments follow reports that Kenya, Rwanda and Uganda could be offered a combined 30 per cent stake in the planned refinery, with the regional investment estimated at about $1.5 billion.

Rwanda signals interest as investment talks take shape

The facility is expected to be built in Lamu, Kenya’s Indian Ocean port city, and could process about 700,000 barrels of crude oil per day. If completed at that scale, it would rank among Africa’s largest refineries.

David Ndii, an economic adviser to Kenyan President William Ruto, has said the refinery could cost as much as $16 billion, while associated petrochemical and port infrastructure could push the wider project cost to about $20 billion.

Construction is expected to take between three and five years, with groundbreaking reportedly planned for September.

The proposal comes as East African economies remain heavily dependent on imported refined petroleum products, leaving them exposed to global oil prices, shipping costs and foreign-exchange pressures.

A major regional refinery could potentially shorten fuel supply chains and increase local refining capacity, although its economic impact would depend on financing, crude supply arrangements, infrastructure and the eventual commercial terms of the project.

Dangote already operates a 650,000-barrel-per-day refinery in Lagos, Nigeria, which has begun supplying petroleum products to Nigerian and international markets.

A second large-scale refinery in East Africa would significantly expand Dangote’s footprint in Africa’s downstream petroleum sector while potentially giving participating governments a direct financial interest in one of the region’s biggest proposed energy infrastructure projects.