Aliko Dangote Eyes East Africa Refinery, Demands Strong Anti-Dumping Laws
Aliko Dangote has revealed that any plan to build a major refinery in East Africa will depend heavily on the presence of strong anti-dumping laws aimed at protecting local industries from unfair foreign competition. The Nigerian billionaire businessman is reportedly considering a 650,000-barrel-per-day refinery project in Mombasa, Kenya, a move that could mirror the scale of his Lagos-based refinery and become one of Africa’s largest energy investments.
According to reports by the Financial Times, the proposed refinery could cost between $15bn and $17bn, with Kenya emerging as Dangote’s preferred location over Tanzania due to its larger economy, deeper port access and stronger fuel demand. However, Dangote made it clear during the Africa Forward summit in Nairobi that he would not commit to any investment unless governments in the region establish regulations capable of preventing the dumping of cheap imported products into local markets.
Dangote argued that African manufacturers already operate under difficult financial conditions compared to their global competitors. He noted that businesses in Nigeria often borrow at interest rates close to 30 percent, while companies in developed economies can access loans at around three percent. According to him, African industries cannot survive or grow without government policies that provide a level playing field for local investors.
The billionaire businessman also stressed that Africa’s industrial growth depends on the willingness of governments to support and protect indigenous companies. Drawing comparisons with the United States, Dangote said even advanced economies protect critical industries such as automobile manufacturing. He added that Africans must begin to trust and patronise locally made products instead of placing higher value on imported goods simply because they are foreign.
Dangote pointed to Nigeria’s cement industry as evidence that protective economic policies can help local businesses grow into global competitors. As East African nations continue discussions around a regional refinery project to reduce dependence on imported petroleum products, Dangote’s proposal is expected to spark debate over the balance between protecting local industries, encouraging competition and ensuring affordable energy prices across the region.
source: theafricareport