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Tanzania, Dangote discuss $17 billion East Africa refinery project

The proposed project could also allow governments and investors from across East Africa to acquire equity stakes in the venture

Dar es Salaam. President Samia Suluhu Hassan met Dangote Group chairman Aliko Dangote at State House in Dar es Salaam on May 16, 2026, where the two discussed a proposed crude oil refinery project estimated to cost about $17 billion.

According to a statement issued by the Directorate of Presidential Communications, the discussions focused on a refinery expected to serve East African countries and Ethiopia as the region seeks to reduce dependence on imported petroleum products.

The proposed project could also allow governments and investors from across East Africa to acquire equity stakes in the venture.

The talks come amid growing regional efforts to establish a major refining hub capable of processing crude oil from Uganda, South Sudan and the Democratic Republic of Congo.

Last month, Kenyan President William Ruto said East African governments were discussing a joint refinery project to be built in Tanga.

Reuters reported that the planned facility would target regional fuel markets currently dependent on imports.

Industry reports indicate Dangote Group is evaluating both Tanzania and Kenya as possible locations for the refinery.

Tanga has emerged as one option because of its strategic position near regional pipeline routes and port infrastructure.

Mombasa is also under consideration because of its established petroleum logistics network and access to regional fuel markets.

The proposed refinery would mirror Dangote Group’s large-scale refining model in Nigeria.

The company’s Lagos refinery, commissioned recently, has a processing capacity of 650,000 barrels per day and is regarded as Africa’s largest refinery.

Analysts say East Africa’s rising fuel demand, growing import bill and exposure to global supply disruptions have increased pressure on governments to develop domestic and regional refining capacity.

Beyond the refinery discussions, Dangote Group said its Mtwara cement plant is expected to produce about 2.8 million tonnes this year against a target of 3.2 million tonnes.

The company has also introduced 400 natural gas-powered trucks for cement distribution as part of a wider plan to convert 700 trucks to cleaner fuel technology.

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