Dangote Acquires 25% Stake In Kenya’s Oil Pipeline, Targets Southern African Markets

Toyyibat Qasim

Africa’s richest industrialist, Aliko Dangote, has unveiled an ambitious plan to establish a continent-wide petroleum distribution network, disclosing that his conglomerate has acquired a 25 per cent stake in Kenya’s petroleum products pipeline network as part of efforts to expand its footprint across African energy markets.

Dangote also revealed plans for petroleum storage terminals, tank farms and distribution corridors linking Djibouti, Ethiopia, Cameroon and Namibia, with further expansion envisaged into Botswana, South Africa, Zimbabwe and Zambia.

The President and Chief Executive of Dangote Industries Limited disclosed the plans during an interview with Financial Times Africa Editor, David Pilling, at the FT Africa Summit in London.

The proposed network is expected to strengthen the movement of refined petroleum products from major refining centres to markets grappling with supply constraints and fragmented distribution infrastructure.

Dangote said the Group was pursuing the expansion aggressively, describing energy distribution infrastructure as critical to improving Africa’s energy security and accelerating industrial development.

“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.

The acquisition represents a significant step in the conglomerate’s strategy to expand beyond refining into the transportation, storage and distribution of petroleum products across the continent.

Dangote explained that the Group was developing a major distribution corridor connecting Djibouti with Addis Ababa, Ethiopia, supported by storage terminals and tank farms to facilitate the efficient movement of refined products.

He added that another strategic project in Cameroon was nearing completion, while Namibia had emerged as a potential gateway for expanding into Southern African markets.

According to him, Namibia’s geographical position makes it attractive for the distribution of petroleum products from the Dangote Petroleum Refinery in Lagos.

“From our refinery to Namibia is just about four days of steaming,” he said.

Dangote explained that products shipped from Lagos could be distributed through Namibia to neighbouring markets, including Botswana and South Africa, with Zimbabwe and Zambia also featuring in the Group’s broader expansion plans.

The proposed network is designed to connect refining capacity with strategic storage and transportation facilities, potentially improving supply efficiency across markets that have traditionally relied heavily on imported petroleum products.

Plans 700,000-Barrel Refinery In Kenya

Beyond distribution infrastructure, Dangote disclosed plans to establish another refinery in Lamu, Kenya, with a proposed capacity of approximately 700,000 barrels per day.

He said East Africa’s expanding economies, growing mining industry and rising demand for energy made the region attractive for large-scale refining investments.

According to him, technical assessments identified Lamu as the preferred location because of its deep-water access, marine infrastructure and the availability of resources required for a major refinery.

Dangote said the proposed facility would source crude oil from multiple markets rather than depend exclusively on supplies from Kenya or Uganda.

He added that the investment decision was concluded within four months, alleging that commercial interests had attempted to delay the project through legal proceedings shortly before its public announcement.