…unveils African energy network, demands protection for local Industries
By Abubakar Yunusa
Africa’s richest industrialist, Aliko Dangote, has disclosed that his group has acquired a 25 per cent stake in Kenya’s petroleum pipeline network as part of plans to establish an extensive energy distribution system across the continent.
Dangote also called on African governments to protect local industries from unfair competition, warning that excessive dependence on imports would undermine manufacturing, destroy jobs and deepen poverty.
The President and Chief Executive Officer of Dangote Industries Limited made the disclosures during an interview with the Financial Times Africa Editor, David Pilling.
He said the group was expanding its petroleum logistics infrastructure across East, Central and Southern Africa through investments in pipelines, storage terminals and supply corridors.
“Allowing imports to displace local production means we are exporting our jobs out of the continent and importing poverty into the continent,” Dangote said.
The industrialist disclosed that the Kenyan investment was secured with the support of the country’s President, although he did not name the president in the interview excerpt.
“Just let me tell you, 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.
Dangote said the investment would strengthen the movement of refined petroleum products across East Africa and help address longstanding supply bottlenecks.
He added that the group was developing a petroleum distribution corridor linking Djibouti and Addis Ababa, Ethiopia, with storage terminals and tank farms to facilitate the transportation of refined products.
Another project in Cameroon is nearing completion, while Namibia has been identified as a strategic entry point into Southern African markets.
According to Dangote, petroleum products from his refinery in Lagos could reach Namibia within four days by sea before being distributed to neighbouring markets, including Botswana and South Africa.
“From our refinery to Namibia is just about four days of steaming,” he said.
The group is also examining supply routes into Zimbabwe and Zambia as part of its wider plan to connect refining centres with markets that rely heavily on imported petroleum products.
**$50bn investment plan**
Dangote said the distribution network complemented a proposal to establish a refinery in Lamu, Kenya, with a projected capacity of about 700,000 barrels per day.
He identified East Africa’s growing economies, mining industry and rising demand for energy as key reasons for the proposed investment.
The refinery, he said, would source crude oil from multiple markets rather than depend exclusively on Kenya or Uganda.
Dangote explained that Lamu was selected following technical assessments of its deep-water access, marine infrastructure and availability of resources required for large-scale refining.
He also alleged that commercial interests had attempted to delay the project through legal proceedings shortly before its public announcement.
The industrialist further disclosed that his group had earmarked approximately $50bn for investments between 2026 and 2030.
He said the programme was intended to expand the group’s operations and demonstrate that African businesses could execute major industrial projects capable of transforming the continent’s economy.
“The legacy we are trying to set up is how do we industrialise our continent?” he asked.
**‘Why can’t Africa protect its industries?’**
Dangote argued that African countries should adopt policies that encourage local manufacturing instead of exposing domestic producers to unrestricted competition from established foreign industries.
He questioned why African governments should be discouraged from protecting their industries when major economies were increasingly adopting similar measures to strengthen domestic production.
“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 industrial protection was necessary to preserve productive capacity, create jobs and reduce the continent’s dependence on imported goods.
Beyond the petroleum sector, Dangote identified unreliable electricity, weak financial systems and inadequate industrial policies as major obstacles to Africa’s economic transformation.
He described electricity as fundamental to manufacturing, mining and mineral processing, warning that unreliable power supply would continue to limit the continent’s ability to add value to its natural resources.
Dangote also cited an estimated 650 million Africans without access to electricity, arguing that closing the energy gap would create opportunities for employment, industrial expansion and economic diversification.
He questioned why a continent endowed with natural resources, arable land and a youthful population continued to struggle with widespread poverty.
Despite the challenges, the industrialist expressed confidence that Africa could emerge as a major industrial force.
“The journey has started,” he said. “But now we’re awake, and we will make it happen.”
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