Dangote praises Museveni’s mineral export ban, eyes East Africa refinery

• Uganda’s ban on exporting raw minerals aims to boost local processing and earnings.

• Dangote says the policy will attract investors and expand industry.

• Plans are underway for a regional oil refinery in East Africa.

• Africa still depends heavily on imported fuel despite producing crude oil.

Africa’s richest man, Aliko Dangote, has welcomed Uganda’s policy to stop the export of unprocessed minerals, saying it will draw investors and boost local industry.

President Yoweri Museveni repeated the position on April 23, 2026 while speaking at the Africa We Build Summit 2026 in Nairobi. The event was organised by the Africa Finance Corporation together with the Kenyan government.

Dangote, who also spoke at the summit, said banning raw exports forces value addition within Africa. He said this approach would attract companies willing to refine minerals locally rather than ship them abroad.

Uganda expects higher earnings from processing minerals at home. A tonne of raw vermiculite sells for about $25 (around Shs91,000), but the processed product can reach about $410 (roughly Shs1.5 million). Officials say such margins show the benefit of local value addition.

The policy could also create jobs. A new steel plant by Abyssinia Group in Jinja is expected to employ about 280 workers directly and support more than 1,000 others. The factory plans to produce 75,000 tonnes of steel each year using local iron ore.

Uganda holds large mineral reserves, including about 312 million tonnes of iron ore in Kabale. Other deposits include manganese, tin, wolfram, beryl, diamonds and columbite-tantalite.

Gold remains one of the country’s top exports, according to Stanbic Bank Uganda economist Christopher Legilisho. Government has already backed plans for a gold refinery to capture more value from exports.

Dangote also told Museveni and Kenya’s President William Ruto that he is ready to build a major oil refinery in East Africa. He said the project is viable and can move forward without delay.

Ruto said the proposed refinery would be built in Tanga and linked to Mombasa by pipeline. It is expected to process crude from regional producers such as the Democratic Republic of Congo and South Sudan, turning it into a shared facility for the region.

Uganda plans to produce its first oil in July 2026 from the Tilenga and Kingfisher fields. Dangote said his group could deliver the refinery within four to five years, using a model similar to his Lagos facility.

The Lagos refinery, with capacity of 650,000 barrels per day, is the world’s largest single-train plant. It has helped Nigeria reduce fuel imports and is expected to expand further.

Africa produces about 7 per cent of global crude oil but has lost much of its refining capacity over the years. Many countries still depend on imported fuel. Recent tensions in the Persian Gulf have disrupted supply chains and raised risks for import-reliant economies.

East African states remain exposed. Kenya, for example, recently renewed fuel supply deals with companies such as Saudi Aramco, Abu Dhabi National Oil Company and Emirates National Oil Company.