Dar es Salaam. Aliko Dangote, the Nigerian billionaire and head of the Dangote Group, has suggested a regional collaboration between Tanzania and other East African nations to create a multi-billion-dollar crude oil refinery.
The suggestion was reviewed in a senior-level meeting led by President Hassan at the State House in Dar es Salaam on Saturday, May 16, 2026.
The planned oil processing facility is projected to have a price tag of approximately $17 billion.
Under the collaborative framework, the Tanzanian government and other East African countries would engage via equity participation, as stated in a release from State House provided to the media in Dar es Salaam on Saturday, May 16, 2026.
The method seeks to enhance Africa’s own ability to produce oil and decrease the area’s vulnerability to fluctuations in global oil prices and interruptions in supply chains.
Growing confidence in Tanzania
The suggestion arrives during a period when ties between the Dangote Group and the Tanzanian administration have notably improved, as stated in a document signed by Acting Director of Presidential Communications, Mr. Shaaban Kissu.
Throughout the discussions, Mr. Dangote praised President Hassan’s government for enhancing the business and investment environment.
He mentioned the government’s actions to address operational issues at the Group’s cement factory in Mtwara as a major reason for improved productivity and efficiency.
Current data indicates that the Mtwara facility is projected to generate approximately 2.8 million tons of cement this year, nearly reaching its yearly goal of 3.2 million tons.
As stated by Mr Dangote, the advancements have strengthened Tanzania’s role as one of the Group’s key investment areas in Africa.
The company has also introduced 400 lorries fueled by natural gas in Tanzania and intends to transition its entire fleet of 700 lorries to alternative energy sources in an effort to cut expenses and enhance performance.
Regional energy ambitions
The plan for the refinery corresponds to recent regional conversations about energy security within the East African Community (EAC).
The progress comes after recent discussions between Mr. Dangote and Kenya’s President William Ruto, as East African leaders advocate for locally developed solutions to meet the region’s energy needs.
The planned 650,000-barrel-per-day refinery is introduced as Tanzania and Uganda advance toward finalizing the East African Crude Oil Pipeline (EACOP), designed to carry oil from Uganda’s Hoima fields to the Chongoleani Peninsula in Tanga.
The EACOP is controlled by four organizations: TotalEnergies owns 62 percent, the Tanzania Petroleum Development Corporation and the Uganda National Oil Company each hold 15 percent, and China National Offshore Oil Corporation owns 8 percent.
At the gathering held at State House, Mr. Dangote mentioned that the refinery initiative aimed to decrease Africa’s reliance on imported fuel supplies.
President Hassan endorsed the initiative and urged the Dangote Group to consider further investments in Tanzania, such as fertilizer manufacturing to meet increasing local needs.
If put into action, the $17 billion refinery would be considered one of the biggest industrial projects in the history of East Africa.
The collaborative approach aims to maintain that both the financial benefits and directional authority over energy resources stay within the area.
Provided by SyndiGate Media Inc.Syndigate.info).
