Afreximbank hails Kenya’s 16bn US dollar Dangote oil refinery for bolstering EAC energy security

CAIRO: THE African Export-Import Bank (Afreximbank) has congratulated the Government and people of Kenya on the groundbreaking of the Dangote oil refinery in Lamu, saying the 16bn US dollars   project could significantly expand Africa’s refining capacity and strengthen regional energy security.

The bank said the refinery, which is planned to process up to 700,000 barrels of crude oil per day, is expected to create about 60,000 jobs and supply refined petroleum products to Kenya and other markets in the region.

The project is also expected to process crude oil sourced from African producers, including Uganda, creating opportunities to retain more value from the continent’s natural resources and strengthen regional trade.

Afreximbank President and Chairman of the Board of Directors, Dr George Elombi, said the investment demonstrates Africa’s capacity to develop and finance large-scale industrial projects to meet the continent’s economic needs.

“The significance of this investment extends well beyond the construction of a refinery. It demonstrates Africa’s capacity to conceive, finance and build major industrial assets that respond directly to the needs of our economies,” Dr Elombi said.

He said increasing refining capacity within Africa would help create jobs, strengthen industrial supply chains and deepen trade links among African economies.

Dr Elombi added that recent disruptions to global energy and shipping routes had highlighted the risks associated with dependence on distant supply chains for strategic commodities.

“Africa has the capital, the enterprises and the markets to reduce that exposure,” he said, adding that investments such as the Lamu refinery could help shorten supply chains, conserve foreign exchange and strengthen regional energy security.

The Lamu project comes as Kenya continues to expand its industrial and trade infrastructure, with Afreximbank supporting several major initiatives in the country.

In 2023, the bank launched a 3bn US dollars   Country Programme for Kenya to support priority public and private-sector projects, including industrial development, export manufacturing, climate adaptation, irrigation, trade infrastructure and support for small and medium-sized enterprises.

The programme includes an 800m US dollars   Kenya Climate Change Adaptation Facility aimed at supporting irrigation development and agricultural productivity.

Afreximbank is also working with the Kenyan Government and ARISE Integrated Industrial Platforms (Arise IIP) to support the development of the Dongo Kundu Integrated Industrial Park in Mombasa and the Naivasha Special Economic Zone II.

About 1bn US dollars  has been earmarked for the two industrial parks, which are expected to promote export manufacturing, attract investment and strengthen Kenya’s position as an industrial and logistics gateway to East and Central Africa.

Government projections indicate that the two developments could create about 140,000 jobs once fully operational.

The bank has also expanded its support for the Vipingo Special Economic Zone in Kilifi County. In 2025, Afreximbank and KCB Group announced an 800m US dollars   financing framework, comprising 500m US dollars from Afreximbank and 300m US dollars   from KCB, to support businesses establishing operations in the zone.

Afreximbank said it had already disbursed 40m US dollars   towards development of the special economic zone, with the financing targeting manufacturing, agro-processing, logistics and other value-addition activities.

The bank also commended Dangote Industries Limited President and Chief Executive, Aliko Dangote, and the Dangote Group for their continued investment in Africa’s industrial development.

Afreximbank said it has maintained a longstanding partnership with the Dangote Group focused on industrialisation, value addition and expanding Africa’s productive capacity.

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Since 2015, the bank has invested approximately 15bn US dollars   in the Dangote Group, including financing for the Dangote Petroleum Refinery and Petrochemicals Complex in Nigeria.

In 2025, Afreximbank signed a 1.35bn US dollars   financing facility as part of an approximately 4bn US dollars     syndicated financing package for Dangote Industries Limited.

In 2026, the bank underwrote 2.5bn US dollars  of a 4bn  US dollars  senior syndicated term loan for the refinery, representing the largest participation in the financing syndicate.

Since refining operations began, Afreximbank has also provided a1bn US dollars  working-capital facility and served as financial adviser on the Naira-for-Crude initiative.

The bank said its support for refinery projects forms part of a broader effort to develop an African market for petroleum products refined on the continent.

In 2025, Afreximbank established a 3bn US dollars Revolving Intra-African Oil Import Financing Programme designed to facilitate between 10bn  US dollars  and 14bn US dollars     in intra-African petroleum imports and enable African buyers to source more refined petroleum products from refineries operating within Africa.

Dr Elombi said African companies such as Dangote Industries demonstrate the potential of large-scale African investment to convert natural resources into productive capacity, including refineries, factories, supply chains, jobs and products for regional markets.

He said the expansion of African enterprises across national borders, supported by African financial institutions and conducive government policies, would be important to the continent’s industrial transformation.

Afreximbank said the development of competitive African companies and regional value chains would be important to the implementation of the African Continental Free Trade Area.

The bank said investments such as the Lamu refinery, alongside Kenya’s industrial parks and special economic zones, could contribute to shifting Africa away from reliance on exporting unprocessed commodities and importing manufactured goods towards greater production, processing and trade within the continent.