Rwanda has expressed interest in taking an equity stake in the proposed $16 billion Dangote refinery project in Lamu, Kenya, as the country looks to strengthen its access to refined petroleum products.
Rwandan President Paul Kagame disclosed the development during a press conference in Kigali on August 24, saying preliminary discussions had started between Rwanda and the sponsors of the refinery.
Kagame, however, said it was too early to disclose details of the potential investment, noting that discussions were still ongoing.
He said Rwanda would be pleased to participate in a project of such scale, which is expected to become a major source of refined petroleum products for countries across East Africa.
The proposed refinery is being developed by Nigerian industrialist Aliko Dangote as part of an expansion of his energy business beyond Nigeria.
Dangote had earlier indicated that East African countries could collectively acquire a 30 per cent stake in the project. Kenya is considering taking a 10 per cent share, estimated at about $500 million.
Kenyan economic adviser David Ndii said the proposed investment from countries in the region could total about $1.5 billion.
The refinery was initially considered for Tanzania before Kenya emerged as the preferred location. Mombasa was first identified as a possible site because of its port facilities, but Lamu has since become the preferred location.
The planned facility is expected to have a refining capacity of up to 700,000 barrels of crude oil per day. It could supply petrol, diesel and other petroleum products to Kenya as well as neighbouring markets including Uganda, South Sudan, Rwanda and Ethiopia.
The refinery may also form part of a wider industrial development involving port infrastructure and petrochemical facilities.
Dangote has indicated that preparations for the project are advancing, raising expectations that construction could begin after the necessary agreements with participating countries and other stakeholders are concluded.
Rwanda’s potential investment would give Kigali a direct financial interest in a major regional energy project while supporting its efforts to secure a more reliable supply of petroleum products.
