Tanzania’s richest businessman, Mohammed Dewji, has expressed interest in investing $100 million in Aliko Dangote’s proposed $17 billion refinery project in East Africa, signalling growing investor confidence in the multibillion-dollar venture.
According to a Bloomberg report, Dewji said he would prefer the refinery to be located in Tanzania, but is also willing to invest if Dangote proceeds with plans to establish the facility in Lamu, Kenya.
Dangote recently unveiled plans to replicate the success of his 700,000-barrels-per-day refinery in Lagos by building another mega refinery on Africa’s east coast to boost regional energy security and reduce the continent’s dependence on imported refined petroleum products.
Although Tanzania was initially considered as the preferred location, Dangote has since indicated that Kenya’s coastal town of Lamu offers more favourable commercial and technical conditions for the project.
Speaking on the proposed investment, Dewji said he had yet to discuss the opportunity with Dangote but intends to initiate talks.
“I would lean more toward Tanzania than Kenya, but I will definitely reach out to him, and we can discuss it,” he said.
The report noted that the proposed refinery has continued to attract significant interest from regional and international investors ahead of construction.
A senior executive of Dangote Industries also confirmed that several prospective investors have approached the company regarding participation in the project.
The refinery, estimated to cost $17 billion, is expected to become Africa’s second-largest refinery after the Dangote Petroleum Refinery in Lagos upon completion.
Kenyan President William Ruto has previously expressed optimism that construction of the refinery will commence this year.
Dangote Industries said the project forms part of its long-term strategy to expand refining capacity across Africa, strengthen regional energy security, promote intra-African trade and reduce the continent’s reliance on imported fuels.
The initiative builds on the success of the Dangote Refinery in Lagos, which has significantly transformed Nigeria’s downstream petroleum sector by supplying refined petroleum products to Nigeria and several other African countries.
