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Dangote expands energy network, acquires 25% Kenya pipeline stake

 

By Francis Ajuonuma

President and Chief Executive of Dangote Industries Limited, Aliko Dangote, has announced plans to expand the Group’s petroleum distribution network across Africa through investments in pipelines, storage facilities and supply corridors.

Speaking during an interview with Financial Times Africa Editor, David Pilling, Dangote disclosed that the Group had acquired a 25 per cent stake in Kenya’s petroleum products pipeline network with the support of the Kenyan government.

“Yesterday, with the support from the President of Kenya, we bought 25 per cent of the pipeline network for the distribution of petroleum products,” he said.

He said the investment was part of a broader strategy to strengthen energy security, improve access to refined products and address supply bottlenecks across the continent.

Dangote also disclosed that the Group was developing a petroleum distribution corridor linking Djibouti and Addis Ababa, including storage terminals and tank farms.

He added that a strategic project in Cameroon was nearing completion, while Namibia had been identified as a key hub for supplying Southern African markets.

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

According to him, refined products from the Dangote Petroleum Refinery in Lagos would be transported to Namibia and distributed to markets including Botswana and South Africa. The Group is also examining supply corridors extending into Zimbabwe and Zambia.

The expansion complements plans to establish a refinery in Lamu, Kenya, with a projected capacity of about 700,000 barrels per day.

Dangote said East Africa’s growing economies, mining activities and rising energy demand made the region attractive for refining investments. He added that the proposed refinery would source crude from multiple markets rather than depend solely on Kenya or Uganda.

He said Lamu was selected because of its deep-water access, marine infrastructure and availability of resources required for large-scale refining.

Beyond energy infrastructure, Dangote called on African governments to adopt policies that protect local industries and promote industrialisation.

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

He argued that African countries should be free to support domestic manufacturers, noting that developed economies also protect strategic industries.

“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.

Dangote further disclosed that the Group had earmarked about $50 billion for investments between 2026 and 2030.

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

He identified inadequate electricity, weak financial systems and poor industrial policies as major constraints to Africa’s economic growth.

With about 650 million Africans lacking access to electricity, Dangote said reliable power was essential for manufacturing, mining, mineral processing and job creation.

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

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