East African countries are exploring the possibility of developing a regional oil refinery in a move aimed at strengthening energy security, reducing dependence on imported petroleum products and unlocking greater value from the region's growing crude oil resources.
The proposal, which is being discussed by Kenya, Tanzania, Uganda, South Sudan and the Democratic Republic of Congo (DRC), reflects growing efforts to enhance regional cooperation in the energy sector. The refinery would process crude oil produced within the region, helping participating countries meet domestic fuel demand while reducing reliance on overseas refineries.
The discussions come as East Africa continues to emerge as an important oil-producing region, driven by significant discoveries in Uganda, South Sudan and Kenya. Tanzania is also expected to play a central role through the East African Crude Oil Pipeline (EACOP), which will transport Ugandan crude to the port of Tanga for export.
Speaking during the discussions, Kenyan President William Ruto said the proposed refinery could become a strategic regional investment that enhances energy resilience while supporting industrial development and economic growth across East Africa.
"A regional refinery would allow East African countries to process more of their own crude oil instead of exporting raw resources and importing refined fuels at higher costs."
Nigerian billionaire industrialist Aliko Dangote has reportedly expressed interest in supporting the initiative. Dangote, whose multi-billion-dollar refinery in Nigeria is now one of the world's largest single-train refineries, is expected to provide valuable technical expertise should the project move forward.
Industry analysts note that refining crude oil within the region would create significant economic benefits beyond fuel production. Local refining could stimulate manufacturing industries, create thousands of skilled and semi-skilled jobs, strengthen supply chains and improve foreign exchange savings by reducing petroleum imports.
The project would also support the objectives of the African Continental Free Trade Area (AfCFTA) by encouraging regional value addition and increasing trade among East African nations.
However, experts caution that developing a regional refinery would require substantial financial investment, coordinated policy frameworks and long-term political commitment from participating governments. Infrastructure such as pipelines, storage facilities and transportation networks would also need to be expanded to support refinery operations efficiently.
Despite these challenges, demand for refined petroleum products across East Africa continues to rise due to rapid urbanization, industrialization and population growth. A regional refinery could therefore help stabilize fuel supplies while improving price competitiveness in domestic markets.
Energy experts believe the initiative could complement existing infrastructure projects, including the East African Crude Oil Pipeline, positioning East Africa as a more integrated energy hub capable of serving both domestic and export markets.
If realized, the refinery would represent one of the region's most ambitious collaborative energy projects, reinforcing East Africa's strategy of moving beyond raw commodity exports towards higher-value industrial processing. As discussions continue, governments will be expected to assess financing models, technical feasibility and governance structures that can turn the proposal into a commercially viable regional asset.