Dangote Petroleum Refinery and Petrochemicals is witnessing increased interest from African countries seeking alternative fuel supplies following disruptions triggered by the ongoing conflict involving Iran.
A report by Bloomberg on Friday indicated that several governments across the continent are making moves to secure refined petroleum products as instability in the Middle East continues to affect supply chains.
The report noted that countries including South Africa have approached the refinery as part of efforts to stabilise fuel availability.
Industry sources said the rising demand is driven more by concerns over supply security than pricing, as nations prioritise uninterrupted access to petroleum products.
Speaking on the development, President of the Dangote Group, Aliko Dangote, said the current situation is largely about availability rather than cost.
“Right now, it is not about pricing but availability, and the situation may persist for some time,” he said in an interview with The Economist.
South African authorities, quoted in the report, said the government is working closely with stakeholders to secure both crude oil and refined products from a broader range of sources.
According to officials, measures have been put in place to manage potential supply disruptions arising from the crisis.
The development comes against the backdrop of the ongoing US-Israel conflict with Iran, which has significantly disrupted global energy markets and affected the flow of crude and refined petroleum products from the Middle East.
Many African countries, particularly in eastern and southern regions, depend heavily on imports from the region, exposing them to supply shocks during periods of geopolitical tension.
With a refining capacity of 650,000 barrels per day, the Dangote facility is emerging as a viable alternative hub for fuel supply within Africa.
While a substantial portion of its output is designated for domestic consumption, the remaining volume is available for export to other countries.
Sources familiar with the discussions said South Africa is exploring a 12-month supply arrangement with Nigeria, while Ghana and Kenya have also reportedly initiated contact for potential fuel supply deals.
Data from energy consultancy CITAC shows that about 75 per cent of refined fuel imports in eastern and southern Africa originate from the Middle East, underscoring the region’s vulnerability.
Despite the pressure, some countries are relying on short-term reserves to cushion immediate supply risks as they seek more stable alternatives.
The Dangote refinery recently attained its full operational capacity and there are ongoing plans to expand output, positioning it as a key player in Africa’s energy landscape.
