Tanzania has officially declared its readiness to host a proposed oil refinery plant in Tanga, a strategic project envisioned to significantly bolster fuel supply across East Africa, enhance regional energy security, and foster stronger economic integration. Ambassador Mahmoud Thabit Kombo, Minister for Foreign Affairs and East African Cooperation, confirmed Tanzania's welcoming stance in an interview, responding to recent discussions initiated by Kenya's President Dr. William Ruto, Uganda's President Mr. Yoweri Museveni, and Dangote Group President Mr. Aliko Dangote.

Ambassador Kombo emphasized Tanzania's open-door policy for all investments, provided they strictly adhere to national laws and regulations. "Tanzania's stance on the refinery project proposal is clear. We welcome all investors as long as they adhere to the country's legal investment requirements," he stated. He further highlighted that this mega refinery project, alongside other critical national initiatives like the Lindi Liquefied Natural Gas (LNG), Kabanga, and Mchuchuma projects, is pivotal for creating substantial employment opportunities, particularly for the youth, and boosting the nation's overall economy.

The investment proposal was formally presented by Kenya, Uganda, and the Dangote Group during an infrastructure financing conference in Nairobi. Mr. Aliko Dangote, Africa's richest businessman, expressed his readiness to spearhead the project, offering to replicate his successful 650,000-barrel-per-day refinery model from Nigeria in East Africa. He projected a completion timeline of four to five years once agreements are solidified and government consensus is achieved.

Economists and business analysts have largely welcomed the proposal, recognizing its potential to dramatically improve fuel supply in East Africa and position Tanzania as a central regional hub. Dr. Sylvester Jotta, a business and entrepreneurship expert from Saint Augustine University of Tanzania (SAUT), underscored the importance of local crude oil refining. He noted that this initiative would replace the previous plan of exporting crude oil overseas for value addition, thereby reducing reliance on imported fuel and alleviating cost burdens on consumers. Dr. Jotta also suggested that the project could stimulate petroleum exploration in regions like Mtwara and Lindi, which already exhibit strong indications of natural gas and potential oil reserves. He anticipates Tanga emerging as a significant industrial hub, attracting manufacturing industries due to improved fuel availability and affordability, alongside generating substantial employment and government revenue through Value Added Tax (VAT) and other levies.

The proposed refinery project is strategically designed to leverage crude oil production from Uganda, which will be transported via the East African Crude Oil Pipeline (EACOP). This pipeline stretches approximately 1,443 kilometers from Kabaale-Hoima to the Chongoleani Peninsula near Tanga, Tanzania, with a peak capacity of 246,000 barrels per day. Currently, Tanzania imports 100 percent of its petrol and diesel, primarily from the Middle East.

Economic analyst Mr. Kelvin Msangi described the proposal as a crucial test of the region's capacity to transform its dependence on fuel imports into a viable industrial opportunity. He emphasized that the Tanga refinery should be regarded as a strategic hedge against imported inflation, foreign exchange losses, and energy supply risks, rather than merely a prestige project. Msangi pointed out that refined petroleum products represent the largest import category in the East African Community, valued at over 11 billion US dollars. Citing Bank of Tanzania (BoT) data, he highlighted that oil imports cost Tanzania 2.11 billion US dollars in the year ending February 2026, constituting 13.8 percent of the country's total import bill. While local refining would not entirely eliminate exposure to global crude prices, it would significantly reduce reliance on imported refined products, lower external refining costs, enhance storage capacity, and strengthen supply resilience during global disruptions.

Dr. Hildebrand Shayo, an economist and investment banker, affirmed that the proposed refinery, supported by the Dangote Group and regional partners, could revolutionize fuel supply dynamics across Tanzania and East Africa. He stated that this initiative would enable the region to transition from near-total dependence on imported refined petroleum to a more self-sufficient and integrated energy system. Dr. Shayo elaborated that the refinery would stabilize supply, reduce import bills, shorten supply chains, and lower transport and transaction costs. Furthermore, the project is expected to enhance port operations, improve logistics, increase foreign exchange earnings, boost intra-African trade, and lessen dependence on Middle Eastern fuel imports by effectively linking upstream producers like Uganda with regional markets.