President William Ruto has reiterated Tanzania’s Port of Tanga as the preferred site for the planned East African oil refinery project, while emphasizing that the ultimate decision will be made by investors led by Nigerian billionaire Aliko Dangote.
According to Ruto, Tanga emerged as the most appropriate location due to the initial design of the region’s crude oil pipeline project, which was intended to terminate there.
“Since the crude pipeline was headed to Tanga, we believed that would be the ideal location. However, we will not impose decisions on Aliko Dangote and the investors,” Ruto stated.
During his address to Tanzanian parliament last week, Ruto found himself explaining his proposal for the Tanga refinery.
This followed concerns raised directly by President Samia Suluhu during a press conference, questioning the basis of his public statement about the project.
“When we were in discussion, I asked Ruto why he announced a refinery in Tanga without my knowledge, he would explain his reasoning,” she said as she invited him to respond.
Ruto clarified that Tanga’s proximity to Mombasa, approximately 190 kilometers away, offers logistical benefits that could facilitate integration of fuel infrastructure and efficient distribution of refined products throughout the region.
“I have been made aware that my announcement regarding the construction of a refinery in Tanga has not been well received by you (Tanzanians). Had I known this, I would have announced that the refinery would be built in Mombasa,” he said.
Speaking at the Africa Forward Summit in Nairobi on Monday, May 11, Ruto indicated that the proposed refinery, with an estimated cost of $16 billion to $20 billion, represents a collaborative effort among Kenya, Uganda, and Tanzania aimed at enhancing regional energy security and industrialization.
He noted that East African nations seek to minimize reliance on imported petroleum products and avoid disruptions resulting from international conflicts and global shipping routes.
“We refuse to be held hostage by the Strait of Hormuz any longer. We will not be held captive by wars initiated by others,” he stated.
Ruto added that the region intends to leverage its natural resources to drive industrial development and economic transformation.
“We possess our own resources here, and we are committed to utilizing our African assets to industrialize our region,” he said.
The President mentioned that Dangote had been requested to conduct feasibility studies to determine the most commercially viable site for the refinery, with both the Port of Mombasa and the Port of Lamu also under consideration.
Ruto further disclosed that East African governments plan to directly invest in the refinery project alongside private investors to mitigate risks and ensure public benefits from the venture.
“But I also want to inform Aliko and all other investors, you will not be investing alone. Governments will also be investing so that when you generate profits, we will share in those returns as well,” he said.
Ruto mentioned that Kenya would utilize resources from the National Infrastructure Fund to support the project and ensure its financial viability.
The refinery proposal forms part of a broader initiative by East African governments to expand infrastructure development through public-private partnerships and attract substantial industrial investments across the region.