- Dangote has acquired a 25% stake in Kenya’s petroleum pipeline network as he expands fuel distribution across Africa
- Dangote is pursuing projects in Ethiopia, Cameroon and Namibia, alongside a proposed 700,000-barrel-a-day refinery in Kenya
- Dangote Industries plans to invest about $50 billion from 2026 to 2030 to grow African industry and energy
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Africa's richest man, Aliko Dangote, has announced plans to establish an extensive petroleum distribution network across Africa following the acquisition of a 25 per cent stake in a Kenyan pipeline network, marking another significant expansion of his energy business beyond Nigeria.
The President and Chief Executive of Dangote Industries Limited disclosed that the conglomerate is pursuing major investments in petroleum pipelines, storage facilities and distribution corridors across East, Central and Southern Africa.
Source: Getty Images
The expansion is expected to strengthen regional fuel supply chains, reduce distribution bottlenecks and create new markets for petroleum products from the Dangote Refinery in Lagos.
Dangote acquires stake in Kenyan pipeline network
Speaking during an interview with Financial Times journalist David Pilling, Dangote revealed that his company recently acquired a 25 per cent stake in a petroleum products pipeline network in Kenya, with support from the country's government.
"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 forms part of a broader strategy to develop an interconnected petroleum distribution system across Africa.
"We are very aggressive with that," Dangote said, referring to the company's investments in pipelines, petroleum depots and other logistics infrastructure.
The businessman explained that the initiative would improve the movement of refined petroleum products between African countries, particularly markets struggling with inadequate storage and transportation infrastructure.
Cameroon, Namibia and Ethiopia targeted
Beyond Kenya, Dangote Industries is developing a petroleum distribution corridor connecting Djibouti and Addis Ababa, Ethiopia, supported by storage terminals and tank farms.
The company is also nearing completion of another infrastructure project in Cameroon, while Namibia has emerged as a strategic gateway into Southern Africa.
Dangote said Namibia's proximity to his Lagos refinery makes it an attractive distribution hub.
"From our refinery to Namibia is just about four days of steaming," he explained.
Under the proposed arrangement, refined petroleum products would be shipped to Namibia before being distributed to Botswana, South Africa and potentially Zimbabwe and Zambia.
The investments could help the conglomerate expand its market reach while reducing dependence on fragmented distribution networks.
New 700,000-barrel refinery planned for Kenya
The pipeline investment also complements Dangote's proposed refinery in Lamu, Kenya, with a projected processing capacity of approximately 700,000 barrels per day.
Dangote identified East Africa's growing economies, expanding mining activities and increasing petroleum demand as major factors driving the investment.
He explained that the proposed refinery would source crude oil from several international markets rather than rely exclusively on Kenya or Uganda.
Lamu was selected following technical assessments that considered deep-water access, marine infrastructure and other requirements for large-scale refining operations.
Dangote said the investment decision was reached within four months, although he alleged that competing commercial interests attempted to delay the project through legal action.
Dangote unveils $50bn investment ambition
The billionaire also disclosed that Dangote Industries has earmarked approximately $50 billion for investments between 2026 and 2030.
He said the programme would support industrial expansion while demonstrating that African businesses can undertake major infrastructure projects.
"The legacy we are trying to set up is how do we industrialise our continent?" he said.
Dangote urged African governments to protect domestic manufacturing, arguing that excessive dependence on imports undermines employment and industrial development.
"Allowing imports to displace local production means we are exporting our jobs out of the continent and importing poverty into the continent," he warned.
Source: Getty Images
He also identified unreliable electricity, weak financial systems and inadequate industrial policies as obstacles to economic transformation.
With hundreds of millions of Africans still lacking electricity, Dangote maintained that investment in energy and manufacturing remains essential to unlocking the continent's economic potential.
"The journey has started," he declared. "But now we're awake, and we will make it happen."
Dangote to sell another of his company’s shares
Legit.ng earlier reported that Africa’s richest man, Aliko Dangote, has announced plans to sell at least 10 per cent of his multibillion-dollar fertiliser business in Ethiopia to local investors, opening the door for ordinary Ethiopians to own shares in one of the country’s biggest industrial projects.
The proposed sale will take place through the Ethiopian Securities Exchange once the $4 billion fertiliser plant begins operations and production stabilises.
Source: Legit.ng