Dangote plans Africa-wide fuel network

President/ Chief Executive of Dangote Industries Limited, Aliko Dangote, has unveiled plans to expand petroleum distribution infrastructure across Africa, while urging governments to protect local industries against unfair foreign competition.

Speaking during a conversation with Financial Times journalist David Pilling, Dangote disclosed that the Group had acquired a 25 per cent stake in a petroleum products pipeline network in Kenya and was pursuing projects in Djibouti, Ethiopia, Cameroon and Namibia.

He said the investments would strengthen fuel supply, reduce distribution bottlenecks and improve energy security across East, Central and Southern Africa.

“We are very aggressive with that,” Dangote said, referring to plans to develop pipelines, depots and other distribution facilities across the continent.

He disclosed that the Group had acquired the Kenyan pipeline stake with the support of the country’s president, describing the deal as part of a broader strategy to connect refining centres with markets that depend heavily on imported petroleum products.

In East Africa, Dangote said the Group was developing a distribution corridor linking Djibouti with Addis Ababa, Ethiopia, supported by tank farms for storing and moving petroleum products. He added that a project in Cameroon was nearing completion, while Namibia would serve as a strategic entry point into Southern Africa.

“From our refinery to Namibia is just about four days of steaming,” he said, explaining that the route would allow refined products from Lagos to reach Namibia for onward distribution to markets such as Botswana and South Africa.

The Group is also considering a distribution corridor through Zimbabwe and Zambia to extend its reach into more African markets.

Dangote linked the expansion to plans for a refinery in Lamu, Kenya, with a proposed capacity of about 700,000 barrels per day.

He said East Africa’s industrial and mining activities, rising energy needs and difficulties in accessing diesel and other petroleum products informed the investment.

According to him, the proposed refinery would source crude oil from different markets rather than depend exclusively on supplies from Uganda or Kenya. Site selection considered access to deep water, marine facilities and adequate water resources.

Dangote said the investment decision was reached within four months, alleging that commercial interests had attempted to frustrate the project through legal proceedings shortly before its public unveiling.

Beyond energy infrastructure, the industrialist called on African governments to strengthen domestic manufacturing and protect productive industries against unfair external competition.

He warned that dependence on imported goods deprived African economies of jobs, industrial capacity and opportunities to build wealth locally.

“Exporting our jobs out of the continent, importing poverty into the continent,” he said, describing the consequences of allowing imported products to displace locally manufactured goods.

Dangote questioned why African countries should expose emerging industries to unrestricted foreign competition when major economies were increasingly adopting measures to protect their own manufacturers.

“If America is now saying, no, we are going to protect our industries, who are we in Africa not to protect our own industries?” he asked.

He, however, defended regional free trade, arguing that stronger connections between African markets could help businesses expand and improve the movement of goods. He called for policies that promote trade within the continent while addressing unfair competition from outside markets.

Dangote also disclosed that the Group had budgeted about $50 billion for investments between 2026 and 2030, describing the programme as part of its ambition to demonstrate Africa’s capacity to execute large-scale industrial projects.

He identified infrastructure deficits, particularly unreliable electricity supply, as major barriers to industrialisation. The problem, he said, was especially severe in mining and mineral processing, where inadequate power limits countries’ ability to process natural resources locally before export.

Dangote estimated that about 650 million Africans lacked access to electricity, arguing that addressing the deficit would create opportunities for manufacturing, employment and economic diversification.

He said Africa had the agricultural land, mineral resources and youthful population needed to become a major industrial force, but would require effective agricultural and industrial policies, stronger financial institutions and sustained investment in infrastructure.

“The journey has started,” he said, adding, “But now we’re awake, and we will make it happen.”