Tanzania Moves to Secure Major Dangote Investments in Fertiliser, Energy and Infrastructure After Kenya Wins East African Refinery
Tanzania is intensifying efforts to attract major investments from Nigerian billionaire Aliko Dangote, seeking to secure projects spanning fertiliser production, electricity generation, ports and transport infrastructure after Kenya emerged as the preferred location for Dangote’s planned giant East African oil refinery.
The Tanzanian government is now looking beyond the refinery project and positioning the country to benefit from Dangote’s expanding industrial ambitions across Africa.
A high-level Tanzanian delegation recently visited Dangote’s massive refinery and petrochemical complex in Lagos, Nigeria, as part of renewed discussions between President Samia Suluhu Hassan’s administration and the Dangote Group.
The visit was aimed at following up on investment opportunities previously discussed between President Hassan and the Nigerian industrialist.
Tanzania’s Minister of State responsible for Planning and Investment, Kitila Mkumbo, said the delegation was in Nigeria to advance discussions on potential investments by Dangote in the country.
“We have come here to make a follow-up on what they deliberated with our president in terms of further Dangote investments in Tanzania,” Mkumbo said.
Tanzania Targets Fertiliser and 2,000MW Power Project
Among the most significant projects under consideration is a proposed 2,000-megawatt coal-fired power plant, which could significantly increase Tanzania’s electricity generation capacity if eventually developed.
Dangote Group has also identified a potential urea fertiliser plant in Tanzania, alongside investments in port development and a proposed 40-kilometre concrete access road.
The discussions reportedly extend beyond individual projects, with Tanzania and the Dangote Group also exploring the development of a special trade zone and major transport infrastructure connecting Mtwara on the Indian Ocean coast to Mbamba Bay on Lake Malawi.
While the projects represent potentially transformative investments for Tanzania, no final investment figures or construction timelines have yet been announced.
Losing the Refinery, but Not Dangote
Tanzania’s renewed engagement with Dangote comes after the country missed out on what could have been one of the largest industrial investments in East Africa, the proposed regional oil refinery.
Dangote had previously considered Tanzania as a possible location for the refinery, particularly amid regional discussions about developing a refinery at the port of Tanga.
The proposed facility was expected to serve several East African countries and process crude oil from producers such as Uganda, South Sudan and the Democratic Republic of Congo.
Kenya, Tanzania and other regional governments had been involved in discussions surrounding the project.However, Dangote Industries eventually selected Lamu, Kenya, as the preferred location. The company said commercial and technical considerations influenced the decision, while Tanzania was invited to participate in the project.
The proposed Lamu refinery has since expanded in scale and is expected to have a processing capacity of approximately 700,000 barrels of crude oil per day. If completed, the refinery would become a major addition to East Africa’s energy infrastructure and could reduce the region’s dependence on imported refined petroleum products.
Tanzania Sees Fertiliser as a New Opportunity
Although the refinery decision was a setback for Tanzania, the government appears determined to ensure that the country remains an important destination for Dangote’s future investments. Fertiliser production is emerging as one of the most promising areas of cooperation.
Tanzania’s Fertiliser Regulatory Authority disclosed in May that Dangote Group had expressed interest in expanding into fertiliser production following discussions with President Hassan. For Tanzania, such an investment could have major implications for agriculture.
Local fertiliser production could help reduce the country’s dependence on imported agricultural inputs, support farmers, improve productivity and potentially position Tanzania as a fertiliser supply hub for neighbouring East African markets. The opportunity also aligns with Dangote’s broader expansion strategy.
Dangote has announced plans to establish around 20 fertiliser blending plants across Africa by 2028, reflecting the group’s growing ambition to expand its industrial footprint beyond Nigeria.
Dangote’s African Expansion Accelerates
Dangote Group’s growing interest in Tanzania comes as the billionaire continues to expand his business empire across Africa. The group already has an established presence in Tanzania through its cement operations in Mtwara, making the country one of Dangote’s important markets outside Nigeria. The company’s ambitions, however, are increasingly extending beyond cement.
Dangote’s Nigerian refinery, which began production in 2024 following an investment of more than $20 billion, has become one of the most significant industrial projects on the African continent. The 650,000-barrel-per-day facility has also changed petroleum trade dynamics between Nigeria, other African markets and international suppliers.
The group is preparing to list the Nigerian refinery in Nigeria, with plans to raise approximately $5 billion. The potential listing could become one of Africa’s largest-ever stock market offerings.
Part of the capital raised is expected to support Dangote’s wider expansion programme, including major investments outside Nigeria.
A New Contest for Dangote Capital
The latest Tanzanian delegation highlights a growing competition among African governments to attract capital from one of the continent’s most powerful industrial groups. While Kenya has secured the proposed East African refinery, Tanzania is seeking to establish itself as another major destination for Dangote’s investments.
Instead of focusing solely on petroleum refining, Tanzania is targeting sectors that are critical to long-term economic development, electricity, fertiliser, agriculture, ports, trade and transport infrastructure. If the proposed projects progress beyond negotiations and eventually reach construction, they could create jobs, strengthen industrial capacity, improve infrastructure and stimulate economic activity across several sectors. For Tanzania, the objective is therefore bigger than replacing the refinery opportunity.
The country is seeking to become a second major pillar of Dangote’s East African expansion, leveraging its strategic location, coastline, agricultural potential and growing infrastructure needs.
And for Dangote, Tanzania could provide an important base for expanding an increasingly pan-African industrial empire, one that is no longer centred solely on Nigeria but increasingly connected to the continent’s energy, agriculture and infrastructure ambitions.
