Rwanda: Kagame Says Rwanda Considering Investment in Dangote-Backed Oil Refinery

President Paul Kagame said Rwanda would be happy to acquire a stake in Aliko Dangote's planned oil refinery in East Africa, though talks are still in the early stages.

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Speaking at a press conference in Kigali on Monday, August 24, Kagame responded to recent media reports that Kenya, Rwanda and Uganda had been offered a 30 per cent stake in the $16 billion oil refinery proposed by the Nigerian billionaire.

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The total investment for the region could be about $1.5 billion, according to media reports.

The refinery planned for Kenyan port city of Lamu is expected to have a processing capacity of 700,000 barrels per day, matching the scale of Dangote's flagship refinery in Nigeria.

Kagame was asked whether there had been a conversation about Rwanda's potential acquisition of a stake in the refinery.

"In a way, there has been. But it is too early to talk about the details because I think it is work in progress. Things are still being thought out," Kagame said.

"What I can say is that Rwanda would be very happy to be part of that kind of investment," Kagame said.

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The refinery itself could cost up to $16 billion, while the broader petrochemical complex and additional port infrastructure could bring the total investment to around $20 billion, according to David Ndii, an economic advisor to Kenya's President William Ruto.

Construction is expected to take between three and five years, with groundbreaking planned for September.

The project comes as African countries continue to look for ways to process the continent's oil and gas resources and reduce on imported refined petroleum products.

Dangote's 650,000-barrel-per-day refinery in Lagos has already become a major source of refined fuel for Nigeria and international markets.

A second large-scale refinery in East Africa would expand the group's influence across Africa's downstream petroleum industry.

The proposed Kenyan facility could also reduce the region's dependence on imported refined fuel by providing a closer source of gasoline, diesel and other petroleum products for East African markets.

Read the original article on New Times.