By Onu Okorie

Africa’s push to end its dependence on exporting raw commodities and importing finished products is gathering momentum with the planned US$16 billion Dangote refinery in Lamu, Kenya, which the African Export-Import Bank (Afreximbank) says could reshape the continent’s energy security and regional trade.
The planned refinery, with a projected capacity of 700,000 barrels of crude oil per day, is expected to create about 60,000 jobs and process crude from African producers, including Uganda, for supply to Kenya and other East African markets.
For Afreximbank, the significance of the project extends beyond Kenya’s energy sector. The bank sees the investment as part of a broader effort to establish African-based production capacity, shorten supply chains and retain a greater share of the value generated from the continent’s natural resources.
Afreximbank President and Chairman of the Board of Directors, Dr George Elombi, said the project demonstrated that African businesses and financial institutions could participate in financing and developing major industrial assets capable of serving regional markets.
“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,” Elombi said.
He said expanding refining capacity would enable African countries to retain more value from crude production while creating jobs and strengthening trade links between economies.
Energy security becomes strategic issue
The project is coming at a time when disruptions to international shipping and energy routes have renewed concerns about Africa’s exposure to external supply chains.
Afreximbank pointed to disruptions around the Strait of Hormuz, Red Sea and Bab el-Mandeb as reminders of the vulnerabilities faced by economies that rely heavily on distant sources for strategic commodities.
Elombi said African countries have the capital, enterprises and markets needed to reduce such exposure by expanding domestic productive capacity.
“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 said.
According to him, investments such as the Lamu refinery could help shorten supply chains, conserve foreign exchange and strengthen regional energy security.
The refinery is also expected to create opportunities for local industrial supply chains and associated services, while providing a new platform for regional exports of refined petroleum products.
Afreximbank deepens Kenya investment
The Lamu project is part of a wider expansion of Kenya’s industrial and trade infrastructure, where Afreximbank has established a significant financing relationship with the government.
In 2023, the bank launched a US$3 billion Country Programme for Kenya, covering industrial development, export manufacturing, climate adaptation, irrigation, trade infrastructure and support for small and medium-sized enterprises.
The programme includes an US$800 million Kenya Climate Change Adaptation Facility, aimed at supporting irrigation and agricultural productivity.
Afreximbank is also working with the Kenyan government and ARISE Integrated Industrial Platforms on the Dongo Kundu Integrated Industrial Park in Mombasa and Naivasha Special Economic Zone II.
About US$1 billion has been earmarked for the two industrial parks, which are expected to attract investment, expand export manufacturing and strengthen Kenya’s position as a logistics and industrial gateway to East and Central Africa.
The projects have been associated with potential creation of about 140,000 jobs when fully developed.
The bank has also expanded support for the Vipingo Special Economic Zone in Kilifi County, where Afreximbank and KCB Group announced an US$800 million financing framework in 2025 for enterprises establishing operations in the zone.
The financing is targeted at manufacturing, agro-processing, logistics and other value-addition activities.
Dangote expands African industrial footprint
Afreximbank also commended Aliko Dangote and Dangote Industries Limited for extending the group’s industrial investment beyond Nigeria.
The bank said it has invested approximately US$15 billion in the Dangote Group since 2015, including financing for the Dangote Petroleum Refinery and Petrochemicals Complex in Nigeria.
In 2025, Afreximbank signed a US$1.35 billion financing facility as part of an approximately US$4 billion syndicated financing for Dangote Industries Limited.
In 2026, it subsequently underwrote US$2.5 billion of a US$4 billion senior syndicated term loan for the refinery, representing the largest participation in the syndicate.
The bank has also provided a US$1 billion working-capital facility for the refinery and acted as financial adviser on the Naira-for-Crude initiative.
Elombi said Dangote’s expansion demonstrates the potential of African enterprises to develop productive capacity across national borders.
“African enterprises such as Dangote Industries demonstrate what is possible when African ambition is matched by investment at scale,” he said.
He added that Africa’s economic transformation would increasingly depend on African companies investing across borders, African financial institutions supporting those investments and governments creating enabling conditions.
Building an African market for African products
The Lamu refinery also fits into Afreximbank’s broader strategy of developing intra-African trade in refined petroleum products.
In 2025, the bank established a US$3 billion Revolving Intra-African Oil Import Financing Programme, designed to facilitate an estimated US$10 billion to US$14 billion in intra-African petroleum imports.
The programme is intended to enable African buyers to source more refined products from refineries operating within the continent.
For Afreximbank, the development of the Lamu refinery alongside Kenya’s industrial parks and special economic zones represents a broader shift in Africa’s economic model — from exporting unprocessed resources and importing finished goods towards producing, processing and trading more within the continent.
The bank said such regional value chains would be important to realising the potential of the African Continental Free Trade Area (AfCFTA) and building greater economic resilience across the continent.