Uganda supports the establishment of a giant oil refinery in East Africa: We will not export raw materials.
East African oil refinery
Written by Ziad Abdel Fattah:
With rapid steps, East African countries are intensifying efforts to establish an oil refinery by the continent’s richest businessman, Nigerian Aliko Dangote, at a cost ranging between $15 and $17 billion.
Ugandan President Yoweri Kaguta Museveni met yesterday with prominent African businessman Aliko Dangote in Nakasero, where the two sides discussed the proposed regional oil refinery project for East Africa.
Uganda refuses to export crude oil
President Museveni reiterated Uganda’s firm stance against exporting raw materials without adding value to them, noting that Uganda deliberately delayed oil production to prioritize the construction of a refinery.
He stressed that exporting crude oil without refining it would deprive the country of the strategic and economic benefits associated with refined petroleum products.
The President welcomed the proposal to create a larger regional refinery, describing it as a step towards strengthening African integration and achieving shared prosperity.
He stressed the need for East African countries to cooperate, rather than operate as fragmented markets, to make large-scale industrial projects more viable and beneficial for citizens throughout the region.
Museveni affirmed Uganda’s commitment to supporting the regional oil refinery initiative, while continuing to develop the national oil refinery project in Homa.
Nigerian businessman Aliko intensified Dangote His movements in East Africa during a tour that included Kenya, Uganda, Ethiopia and Tanzania, to discuss the implementation of a huge project to build a regional oil refinery, which is considered one of the largest energy projects on the continent.
Dangote leads the giant refinery project in East Africa
The project was estimated to cost between $15 and $17 billion, with a production capacity of up to 650,000 barrels per day, amid competition between several countries to host the project, and growing political support for the idea of boosting local manufacturing and reducing dependence on fuel imports.
Political support and a strategic location enhance the chances of hosting the regional refinery.
Nigerian businessman and one of the most prominent investors in the African continent, Aliko Dangote, participated in the 'Africa We Build' summit held in the Kenyan capital, Nairobi, where he presented a huge investment proposal to establish a regional oil refinery in East Africa similar to his refinery in Nigeria.
Nigerian cement company Dangote Cement said it is considering a listing on the London Stock Exchange, a move that would broaden its access to foreign investors and capital, although it did not provide details on the terms or timing of the plan. Continue reading.
