East Africa breaks ground on Dangote's USD 16-billion Lamu refinery

Five African heads of state on Wednesday led the ground-breaking ceremony for a USD 16-billion oil refinery project in East Africa, as leaders pushed for the continent to become more self-sufficient in turning raw materials into finished products.

The refinery, to be built in Kenya's coastal town of Lamu by Nigerian billionaire Aliko Dangote, is expected to process 700,000 barrels of oil a day when it is completed in 40 months. Dangote said the project reflected a wider need for the continent to build its own industrial capacity.

Kenyan President William Ruto hosted his counterparts from Uganda, Ethiopia, Togo and Benin, along with Nigeria's former President Olusegun Obasanjo, at the ceremony. The leaders shoveled soil at the site in a symbolic start to construction.

Dangote said, "Africa must industrialise Africa" and added that the continent cannot be "exporting what it has and importing what it needs".

The refinery will rely on oil from neighbouring countries such as Uganda, which plans to export oil through Tanzania, and South Sudan, which exports oil via Sudan. Dangote said East African countries have a sufficient market for the refined oil, adding that the region consumes much more than the 700,000 barrels per day the refinery is expected to process.

The refinery had initially been planned for Tanga in Tanzania, but Dangote said Lamu was later chosen because it has deeper waters, solid ground that can support heavy equipment, and deep-sea access. Other East African countries, including Rwanda, Burundi, South Sudan and Tanzania, sent heads of delegation to represent their heads of state at the ceremony, which marked the formal start of the project.