East Africa’s refinery revival

What the report says

East Africa is entering a new phase in petroleum refining, with major projects advancing in Kenya and Uganda and a separate proposal under review in Tanzania, according to The Independent Uganda. The developments are aimed at reducing the region’s reliance on imported fuel and keeping more of the value chain inside Africa.

The most advanced project is Dangote’s planned US$16 billion refinery at Lamu on Kenya’s coast, where construction was formally launched on Sept. 30. The article says the plant is expected to process up to 700,000 barrels of crude a day and could create about 60,000 jobs. Kenya previously had a refinery in Mombasa, but that facility stopped refining crude in 2013 and has mainly served as a storage site since then.

Uganda is also pursuing a 60,000-barrel-a-day refinery in Hoima, in the oil-producing Albertine region, while Tanzania is considering a refinery at Tanga linked to broader energy infrastructure. The report notes that Uganda’s crude is expected to move through the East African Crude Oil Pipeline to Tanga, while the Lamu project is tied to a different transport corridor. Tanzania’s authorities have begun technical work, including feasibility studies and land-related planning.

The article says the projects could complement one another, but there is also a risk they may compete for crude supplies and regional markets. Supporters argue that expanded refining could improve energy security, shorten supply chains and retain more economic activity within East Africa.