Dangote Plans Major Petroleum Distribution Network Across Africa

Aliko Dangote, President and Chief Executive of Dangote Industries Limited, has announced plans to establish a major petroleum distribution network across Africa through investments in pipelines, storage facilities and strategic supply routes.

The initiative is aimed at improving energy security, increasing the availability of refined petroleum products and reducing supply challenges across the continent. Dangote also called on African governments to protect local industries and introduce policies that would promote industrialisation, job creation and economic growth.

Speaking during an interview with Financial Times journalist David Pilling, the billionaire industrialist disclosed that his group had acquired a 25 per cent stake in a petroleum products pipeline network in Kenya.

He also revealed that the company was pursuing additional infrastructure projects in Djibouti, Ethiopia, Cameroon and Namibia as part of its plan to build an interconnected energy distribution system across Africa.

He explained that investments in pipelines, storage terminals and tank farms would make it easier to transport and distribute refined products across different African countries.

“We are very aggressive with that,” he said while discussing the group’s plans for petroleum distribution infrastructure.

Dangote acquires 25% stake in Kenya pipeline network

Dangote disclosed that the acquisition of a 25 per cent stake in Kenya’s petroleum pipeline network was completed with the support of the country’s government.

He said the investment would strengthen the transportation of refined petroleum products across East Africa and improve access to energy supplies in the region.

The industrialist also revealed plans to develop a major petroleum distribution corridor linking Djibouti with Addis Ababa, Ethiopia. The project is expected to include storage terminals and tank farms to facilitate the movement and storage of petroleum products.

In addition, he said another strategic project in Cameroon was approaching completion, while Namibia had been identified as an important entry point for expanding the group’s operations into Southern Africa.

Dangote explained that Namibia’s location makes it attractive for transporting petroleum products from the Dangote Petroleum Refinery in Lagos.

“From our refinery to Namibia is just about four days of steaming,” he said.

He added that petroleum products shipped to Namibia could be distributed to other markets, including Botswana and South Africa.

The group is also exploring supply routes into Zimbabwe and Zambia as part of its wider strategy to establish a continental distribution network supported by strategically located storage and transportation facilities.

Plans for 700,000-barrel-per-day refinery in Kenya

The petroleum distribution initiative complements Dangote’s plan to establish another refinery in Lamu, Kenya, with a proposed capacity of approximately 700,000 barrels per day.

He said East Africa’s growing economies, expanding mining industry and rising energy demand made the region an attractive destination for major refining investments.

According to him, the proposed refinery would source crude oil from different markets rather than rely entirely on supplies from Kenya or Uganda. This approach, he explained, would provide greater flexibility and support the project’s long-term sustainability.

Dangote said technical assessments identified Lamu as the preferred location because of its deep-water access, marine infrastructure and availability of resources needed for large-scale refining operations.

He added that the investment decision was reached within four months but alleged that some commercial interests attempted to delay the project through legal proceedings shortly before its public announcement.

Dangote calls for protection of African industries

Beyond the energy sector, Dangote urged African governments to adopt industrial policies that protect domestic manufacturers from unfair competition and encourage local production.

He argued that African economies would struggle to develop strong manufacturing sectors if local businesses were exposed to unrestricted imports from more established industrial economies.

According to him, excessive dependence on imported goods weakens domestic production, limits employment opportunities and prevents African countries from fully benefiting from their natural resources.

“Allowing imports to displace local production means we are exporting our jobs out of the continent and importing poverty into the continent,” he said.

Dangote questioned why African countries should hesitate to support their industries when major global economies also use protective measures to strengthen local manufacturing and preserve jobs.

“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 maintained that governments should create policies that encourage local production, promote investment and help African businesses compete effectively in domestic and international markets.

Dangote earmarks $50bn for investments

The industrialist also disclosed that Dangote Group had earmarked approximately $50 billion for investments between 2026 and 2030.

He described the investment programme as part of a broader effort to demonstrate that African companies can undertake large-scale industrial projects capable of transforming the continent’s economy.

According to him, the planned investments are intended not only to expand the group’s operations but also to encourage other African entrepreneurs and investors to pursue ambitious industrial ventures.

“The legacy we are trying to set up is how do we industrialise our continent?” he said.

Dangote stressed that Africa needed to move beyond exporting raw materials and importing finished products by developing industries capable of processing its resources locally.

He argued that stronger manufacturing industries would create jobs, increase economic opportunities and help African countries retain more value from their natural resources.

Power supply remains a major challenge

Dangote identified inadequate electricity supply, weak financial systems and insufficient industrial policies as major obstacles to Africa’s economic development.

He described reliable electricity as essential for industrialisation, particularly in manufacturing, mining and mineral processing, where consistent power supply is necessary to increase production and add value to raw materials.

The industrialist highlighted the continent’s electricity access gap, noting that an estimated 650 million Africans still lack access to electricity.

He said addressing the problem would create opportunities for industrial expansion, job creation and economic diversification.

Dangote questioned why Africa, despite its abundant natural resources, large areas of arable land and youthful population, continues to face widespread poverty and underdevelopment.

He maintained that the continent possesses the resources and human potential needed to become a major global industrial centre but must adopt policies that support local businesses and encourage long-term investment.

Despite the challenges, Dangote expressed optimism about Africa’s economic future, insisting that the continent’s industrial transformation had already begun.

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

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