Dangote Industries is expanding petroleum distribution across Africa after acquiring a 25% stake in Kenya’s pipeline network and outlining plans for a major refinery in Lamu.
Dangote Industries Limited has acquired a 25 per cent stake in Kenya’s petroleum products pipeline network to expand fuel distribution across Africa.
The group plans to invest in pipelines, storage facilities and transportation corridors across East, Central and Southern Africa.
Aliko Dangote, President and Chief Executive of Dangote Industries Limited, disclosed the plans during a conversation with Financial Times journalist David Pilling.
Meanwhile, he urged African governments to protect domestic industries from unfair foreign competition, arguing that local manufacturing remains essential to economic development.
Dangote Targets Regional Fuel Supply Infrastructure
According to Dangote, the Kenyan pipeline acquisition forms part of a broader strategy to establish an integrated petroleum distribution network across African markets.
For instance, the group is developing a distribution corridor linking Djibouti to Addis Ababa, Ethiopia. Meanwhile, projects in Cameroon and Namibia remain at different stages of development.
The planned infrastructure will include pipelines, depots and storage facilities to improve the movement of refined petroleum products between countries.
Namibia Corridor to Serve Southern Africa
Beyond East Africa, Dangote identified Namibia as a strategic entry point for supplying refined products from its Lagos refinery to Southern African markets.
He said shipping petroleum products from Nigeria to Namibia takes approximately four days.
Furthermore, the group plans to extend its distribution network through Zimbabwe and Zambia, with infrastructure serving markets such as Botswana and South Africa.
This proposed corridor would extend the reach of the Dangote Petroleum Refinery beyond Nigeria and support cross-border fuel distribution.
Proposed Kenya Refinery to Process 700,000 Barrels Daily
Alongside its distribution investments, Dangote plans to establish a refinery in Lamu, Kenya, with a proposed capacity of approximately 700,000 barrels per day.
He linked the proposal to East Africa’s industrial and mining activities, rising energy demand and persistent difficulties accessing diesel and other petroleum products.
However, the refinery would not depend exclusively on crude supplies from Kenya or Uganda. Instead, Dangote said the facility would source crude oil from multiple markets.
He added that the group selected Lamu after assessing several locations, considering deep-water access, marine infrastructure and water availability.
According to Dangote, the investment decision took four months. He also alleged that commercial interests attempted to frustrate the project through legal proceedings shortly before its public unveiling.
Dangote Calls for Policies Supporting Local Industry
Separately, Dangote called on African governments to strengthen policies supporting domestic manufacturing and protecting local producers from unfair competition.
He warned that imported products displacing locally manufactured goods could weaken industries, reduce employment opportunities and deepen economic hardship.
His comments highlight the connection between the group’s regional petroleum infrastructure expansion and its broader call for policies that strengthen Africa’s industrial capacity