Samia, Dangote explore $17bn refinery deal as Tanzania courts major investment expansion

Tanzania and the Dangote Group are exploring deeper investment cooperation, including a proposed multi-billion-dollar oil refinery project, following high-level talks between President Samia Suluhu Hassan and business mogul Aliko Dangote at State House in Dar es Salaam.

The meeting focused on expanding collaboration in key sectors including energy, manufacturing, ports, natural gas, fertiliser production, and infrastructure development, as Tanzania positions itself as a regional investment hub.

According to statements from the discussions, Dangote commended the Tanzanian government for improving the investment climate and resolving longstanding operational challenges affecting his cement operations in the country.

“I want to sincerely thank you for addressing many of the challenges affecting our investment in the Mtwara Cement Factory. When you came into office, we had many challenges, but as you promised, every challenge has been properly addressed,” Dangote said.

He noted that reforms and government responsiveness had significantly improved efficiency and strengthened investor confidence in Tanzania’s economy.

The Dangote Group highlighted progress at its cement operations in Mtwara, saying the plant is expected to produce about 2.8 million tonnes of cement this year, against a target of 3.2 million tonnes, signaling near-capacity performance.

“We are doing well. I must thank Your Excellency the President for your leadership; because without your leadership, the market would not have been as good and productive, enabling us to operate at this scale,” Dangote said.

A major highlight of the talks was a proposed crude oil refinery project estimated at $17 billion, which could serve Tanzania and the wider East African region, including Ethiopia.

The project is being discussed as a potential partnership between the government and the Dangote Group.

Officials familiar with the discussions indicated that the refinery plan could include participation from other East African countries through equity ownership, with the aim of strengthening regional energy security and reducing reliance on imported petroleum products.

Dangote emphasised that such a project would not only meet local demand but also position Africa to increase self-sufficiency in energy production.

He said regional collaboration could help shield African economies from global oil price shocks and supply disruptions, adding that shared ownership would strengthen continental industrial capacity.

President Samia welcomed the proposals and reaffirmed her administration’s commitment to supporting large-scale investment projects that deliver economic value.

She encouraged the Dangote Group to continue identifying additional investment opportunities in Tanzania, particularly those that generate employment, enhance industrial output, and boost government revenue.

The President also extended an invitation for the conglomerate to invest in fertiliser production, noting that domestic demand far exceeds current supply capacity.

Tanzania has been actively seeking to attract large-scale foreign direct investment in manufacturing and energy as part of its broader industrialisation agenda, with authorities emphasising public-private partnerships as a key driver of growth.

The Dangote Group already operates in Tanzania’s cement sector and has expanded its logistics capacity with the deployment of 400 natural gas-powered trucks, part of a planned fleet conversion of 700 vehicles aimed at reducing operational costs and improving efficiency.

The discussions in Dar es Salaam mark another step in strengthening economic ties between Tanzania and one of Africa’s largest industrial conglomerates, with both sides signalling openness to deeper cooperation in strategic sectors.