By Udeme Akpan,Energy Editor
The African Export-Import Bank, Afreximbank, has described the $16 billion Dangote East Africa Petroleum Refinery and Petrochemicals project in Lamu, Kenya, as a landmark investment capable of strengthening Africa’s energy security, retaining more value from its natural resources and reducing dependence on imported refined petroleum productsThe bank made the declaration following the groundbreaking of the refinery in Mokowe, Lamu County, on September 30, 2026, attended by Kenyan President William Ruto and President and Chief Executive of Dangote Group, Aliko Dangote.The refinery is planned to process 700,000 barrels of crude oil per day and create about 60,000 jobs, with crude expected to be sourced from African producers, including Uganda, while refined products will be supplied to Kenya and other East African markets.Dr George Elombi, President and Chairman of the Board of Directors, Afreximbank, said the significance of the investment went beyond the construction of a refinery.“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,” he said.“By refining more of what we produce on the continent, we retain greater value from our natural resources, create jobs and strengthen the trade links between African economies.”According to Afreximbank, the Lamu project comes at a critical time for Africa’s energy security, following disruptions around the Strait of Hormuz, the Red Sea and Bab el-Mandeb that have highlighted the vulnerability of distant supply chains.Elombi said: “Recent disruptions to global energy and shipping routes have reminded us of the cost of dependence. Africa has the capital, the enterprises and the markets to reduce that exposure.”He added: “Investments such as this give us the productive capacity to shorten supply chains, conserve foreign exchange, strengthen regional energy security and build greater resilience into our economies.”Afreximbank said the project could also deepen industrial supply chains in Kenya and across East Africa, generate employment and create a new platform for regional exports.The bank said its support for Kenya forms part of a wider strategy to strengthen industrialisation and intra-African trade.In 2023, Afreximbank launched a $3 billion Country Programme for Kenya covering industrial development, export manufacturing, trade infrastructure, climate adaptation, irrigation and support for small and medium-sized enterprises.The bank is also supporting the development of the Dongo Kundu Integrated Industrial Park in Mombasa and Naivasha Special Economic Zone II, with about $1 billion earmarked for the two projects. The developments are projected to create about 140,000 jobs when fully developed.Afreximbank also said it has supported Dangote Group with about $15 billion since 2015, including financing for the Dangote Petroleum Refinery and Petrochemicals Complex in Nigeria.In 2026, the bank underwrote $2.5 billion of a $4 billion senior syndicated term loan for the Nigerian refinery.It has also provided a $1 billion working-capital facility and served as financial adviser on the Naira-for-Crude initiative.Elombi said Dangote Group’s expansion into East Africa demonstrated what African businesses could achieve when backed by large-scale investment.“African enterprises such as Dangote Industries demonstrate what is possible when African ambition is matched by investment at scale,” he said.“They turn our natural resources into productive capacity – refineries, factories, supply chains, jobs and products that can be traded across African markets.”He added that Dangote’s decision to extend its industrial footprint into East Africa was significant to Africa’s economic transformation.“Africa’s transformation will increasingly depend on African enterprises investing across our borders, African financial institutions supporting them and governments creating the conditions in which those investments can succeed,” Elombi said.Afreximbank said the Lamu refinery, alongside Kenya’s emerging industrial parks and special economic zones, could help accelerate the shift from exporting unprocessed commodities and importing finished products towards greater production, processing and intra-African trade.