Oil tycoon Dangote: Africa will be mostly self-sufficient in fuel by 2030

Aliko Dangote is behind a refinery project on Kenya's Indian Ocean coast that faces a land rights court case and opposition over its environmental impact.(AFP) — Nigerian oil tycoon Aliko Dangote told AFP on Tuesday that Africa would largely meet its own refined fuel needs by 2030 as he prepared to break ground on a $16 billion refinery on the Kenyan coast.Construction of the East African refinery, planned to process 700,000 barrels of oil a day, is set to begin Wednesday. It is expected to take about 30 months to build.Speaking to reporters in Nairobi, Dangote, Africa’s richest man, said the project was part of an effort to stop exporting raw materials and instead sell finished products.“By 2030, the majority of African countries will be self-sufficient. It does not matter where it is refined, but it should be in the African continent, on the soil of Africa,” he said in response to an AFP question about when Africa would no longer need to import fuel from elsewhere.Dangote dismissed concerns about the project in Lamu, on Kenya’s Indian Ocean coast. It faces a land rights court case and opposition from Greenpeace and others over its environmental impact.“There’s actually no problem with these sort of cases,” he said. “There are people who don’t want the development of Africa.”‘Just the start’Questions remain about where the refinery will get crude oil, given that East African countries are only beginning to develop significant reserves.Dangote said it would source crude from several places, including the Middle East and the United States, and would be ready as countries such as Kenya, Tanzania and Mozambique increased production.“Are we going to wait until (Africa has) one quarter of the world’s population before we start thinking of what to do? We have to start addressing that issue today,” he said, citing U.S. President Donald Trump’s threats to stop exporting diesel.Dangote said the Kenyan refinery would meet only a small part of the demand created by Africa’s growing economy.“When you talk about 700,000 barrels per day, it’s actually small. For the region, it’s a big refinery, it’s a big investment, but it is a start-up,” he said.“This refinery is not all we are going to do there. It’s just the start. … You will see the number of industries that will come around the refinery,” Dangote added.He said Africa’s biggest challenge was to stop exporting raw materials and start making finished products that keep wealth on the continent.“The biggest problem is that we export raw materials at maybe 5% to 10% of its value, and then we end up buying at 100% of its value,” he said.“We are exporting jobs, because when we keep exporting raw materials, you are creating jobs out there. And when you buy finished products from them … you are importing poverty, because you are not actually creating any jobs here.”Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads