Africa could become largely self-sufficient in refined petroleum products by 2030, Nigerian businessman Aliko Dangote has said, as he prepares to begin construction of a major refinery in Kenya.
Dangote is expected to break ground on the $16 billion refinery on the Kenyan coast on Wednesday. The facility is planned to have a refining capacity of 700,000 barrels per day and is expected to take about 30 months to complete.
Speaking in Nairobi, Dangote said the project formed part of a broader effort to ensure African countries process more of their natural resources locally instead of exporting raw materials and importing finished products.
He expressed confidence that most African countries would be able to meet their refined fuel needs from within the continent by the end of the decade.
“By 2030, the majority of African countries will be self-sufficient. It does not matter where it is refined, but it should be in the African continent, on the soil of Africa,” Dangote said.
He argued that Africa loses significant economic value by exporting raw materials cheaply and then purchasing processed products at much higher prices.
“The biggest problem is that we export raw materials at maybe 5 to 10 percent of its value, and then we end up buying at 100 percent of its value,” he said.
According to Dangote, the practice also means African countries lose opportunities to create jobs because processing and manufacturing activities take place outside the continent.
“We are exporting jobs,” he said, adding that importing finished products also contributes to poverty because fewer jobs are created locally.
The planned Kenyan refinery is expected to add to Africa’s refining capacity and support Dangote’s push for greater local processing of the continent’s resources.
Dangote’s comments come as African countries continue to seek ways to reduce dependence on imported refined petroleum products and increase domestic industrial capacity.
Source: AFP.
