Tanzanian billionaire Dewji plans to invest Sh12.9 billion in the oil refinery in Lamu

Tanzania’s wealthiest entrepreneur, Mohammed Dewji, has committed to investing $100 million (Sh12.9 billion) in Aliko Dangote’s oil refinery located in Lamu.

Dewji’s announcement follows the Dangote Group’s selection of Kenya’s Lamu County earlier this week for the proposed Sh2.2 trillion oil refinery.

The planned refinery is set to process 700,000 barrels of crude oil daily, establishing it as East Africa’s largest refinery and the second largest on the continent, following the Lagos facility. 

A site has been identified on Lamu Island, where preliminary engineering studies, design work, and geotechnical investigations are currently in progress prior to construction.

Individuals acquainted with the project have indicated that funding will be sourced from a mix of internally generated resources, corporate bond issuances, and proceeds from a forthcoming initial public offering, with construction anticipated to span approximately five years. 

The proposed Lamu refinery, anticipated to be completed within five years, aims to serve Kenya, Uganda, Tanzania, South Sudan, and the Democratic Republic of Congo, thereby reducing reliance on imported refined petroleum products.