African billionaire Aliko Dangote has dealt a blow to the proposed Tanga Oil Refinery by indicating his preference for Kenya’s Mombasa as the location for the multi-billion shilling project.
During an interview with Financial Times on May 10, Dangote explained that Mombasa possesses a substantially larger and deeper port than the proposed Tanga site in Tanzania, which is crucial for a refinery capable of processing up to 650,000 barrels of crude oil daily.
Dangote emphasized his preference: ‘I’m leaning more towards Mombasa because Mombasa has a much larger, deeper port.’
In addition to the port’s scale advantage, Dangote compared Tanzania and Kenya, highlighting that ‘Kenyans consume more’ and characterizing Kenya as the larger and more appealing market.
This massive project carries an estimated price tag of USD15 billion to USD17 billion, equivalent to approximately Ksh1.9 trillion to Ksh2.2 trillion, positioning it as one of the costliest industrial ventures ever proposed in the East African region.
Despite expressing confidence in Mombasa, Dangote indicated that President William Ruto would ultimately decide where the refinery would be located, as reported by Financial Times.
Dangote reaffirmed: ‘The ball is in the hands of President Ruto. Whatever President Ruto says, we will do.’
The Tanga refinery proposal was revealed only last month when President William Ruto announced the joint regional project during the Africa We Build Summit in Nairobi, where Uganda’s President Yoweri Museveni was also present.
President Ruto detailed an ambitious plan to create an oil refinery processing crude oil from the DRC, Kenya, South Sudan, and Uganda, connected to Mombasa through a pipeline utilizing infrastructure jointly owned with Uganda.
President Ruto explained: ‘That refinery will process oil from the DRC, Kenya, South Sudan and Uganda. We will then build a pipeline from Tanga to Mombasa, allowing finished products to move through infrastructure we jointly own with Uganda.’
However, Tanzania’s President Samia Suluhu was not consulted or informed about the project before Ruto’s public announcement, leaving her surprised by the revelation.
Tensions and diplomatic friction arose when Tanzania’s President Samia Suluhu Hassan publicly rebuked President William Ruto, marking the visit as a significant moment of regional strain.
East Africa currently imports all its refined petroleum, primarily from the Middle East, rendering the region among the most energy-vulnerable globally.
Supply disruptions and price fluctuations have severely impacted transport costs, food prices, and household budgets throughout the region.