Dangote plans Africa-wide fuel network – Daily Trust

President/ Chief Executive of Dangote Industries Limited, Aliko Dangote, has unveiled plans to develop petroleum distribution infrastructure throughout Africa, whereas urging governments to guard native industries towards unfair international competitors.

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

He mentioned the investments would strengthen fuel provide, cut back distribution bottlenecks and enhance power safety throughout East, Central and Southern Africa.

“We are very aggressive with that,” Dangote mentioned, referring to plans to develop pipelines, depots and different distribution services throughout the continent.

He disclosed that the Group had acquired the Kenyan pipeline stake with the help of the nation’s president, describing the deal as a part of a broader technique to attach refining centres with markets that rely closely on imported petroleum merchandise.

In East Africa, Dangote mentioned the Group was creating a distribution hall linking Djibouti with Addis Ababa, Ethiopia, supported by tank farms for storing and transferring petroleum merchandise. He added {that a} mission in Cameroon was nearing completion, whereas Namibia would function a strategic entry level into Southern Africa.

“From our refinery to Namibia is just about four days of steaming,” he mentioned, explaining that the route would permit refined merchandise from Lagos to succeed in Namibia for onward distribution to markets similar to Botswana and South Africa.

The Group can also be contemplating a distribution hall by way of Zimbabwe and Zambia to increase its attain into extra African markets.

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

He mentioned East Africa’s industrial and mining actions, rising power wants and difficulties in accessing diesel and different petroleum merchandise knowledgeable the funding.

According to him, the proposed refinery would supply crude oil from totally different markets moderately than rely solely on provides from Uganda or Kenya. Site choice thought-about entry to deep water, marine services and ample water assets.

Dangote mentioned the funding determination was reached inside 4 months, alleging that industrial pursuits had tried to frustrate the mission by way of authorized proceedings shortly earlier than its public unveiling.

Beyond power infrastructure, the industrialist known as on African governments to strengthen home manufacturing and defend productive industries towards unfair exterior competitors.

He warned that dependence on imported items disadvantaged African economies of jobs, industrial capability and alternatives to construct wealth regionally.

“Exporting our jobs out of the continent, importing poverty into the continent,” he mentioned, describing the results of permitting imported merchandise to displace regionally manufactured items.

Dangote questioned why African nations ought to expose rising industries to unrestricted international competitors when main economies have been more and more adopting measures to guard their very own producers.

“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 requested.

He, nonetheless, defended regional free commerce, arguing that stronger connections between African markets may assist companies develop and enhance the motion of products. He known as for insurance policies that promote commerce throughout the continent whereas addressing unfair competitors from exterior markets.

Dangote additionally disclosed that the Group had budgeted about $50 billion for investments between 2026 and 2030, describing the programme as a part of its ambition to reveal Africa’s capability to execute large-scale industrial tasks.

He recognized infrastructure deficits, significantly unreliable electrical energy provide, as main limitations to industrialisation. The drawback, he mentioned, was particularly extreme in mining and mineral processing, the place insufficient energy limits nations’ capability to course of pure assets regionally earlier than export.

Dangote estimated that about 650 million Africans lacked entry to electrical energy, arguing that addressing the deficit would create alternatives for manufacturing, employment and financial diversification.

He mentioned Africa had the agricultural land, mineral assets and youthful inhabitants wanted to turn into a serious industrial pressure, however would require efficient agricultural and industrial insurance policies, stronger monetary establishments and sustained funding in infrastructure.

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