Addis Abeba — Ethiopian Prime Minister Abiy Ahmed arrived in Kenya on Wednesday, 30 September, to attend the groundbreaking ceremony for Nigerian businessman Aliko Dangote's planned $16 billion oil refinery in Lamu, as Ethiopia weighs an equity stake in the project.

Abiy is among several African leaders expected to join Kenyan President William Ruto for the launch of the proposed East Africa Oil Refinery, which is designed to process up to 700,000 barrels of crude oil per day. Rwanda's Paul Kagame, Uganda's Yoweri Museveni, Burundi's Évariste Ndayishimiye and Benin's Romuald Wadagni are also expected to attend.

The refinery, planned within the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor near Lamu Port, is expected to supply refined petroleum products to Kenya and regional markets, including Ethiopia, Uganda, Tanzania, Rwanda, South Sudan and the Democratic Republic of Congo. Dangote has said the project aims to reduce East Africa's reliance on imported refined fuel and support regional industrialization.

Ethiopia is among East African countries that have expressed interest in taking an equity stake in the refinery, according to Bloomberg. Dangote Group has offered regional governments a combined 30% stake, with Kenya expected to take a 10% share worth about $500 million. Ethiopian and Rwandan authorities have also expressed interest, potentially bringing the regional investment to about $1.5 billion.

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The facility is expected to create more than 50,000 jobs, according to project estimates, with completion targeted for around 2030. Preparations have advanced in recent days, with Lamu Port receiving 2,930 metric tons of heavy construction equipment aboard the MV Da Yang on 26 September.

The groundbreaking comes amid a legal dispute over part of the proposed site. On 25 September, the Malindi Environment and Land Court ordered parties to maintain the status quo over disputed land until a hearing scheduled for 14 October. The case was brought by 133 Chandavai residents who claim ancestral ownership of the land and have raised concerns over compensation, resettlement and environmental procedures.

Amharic language resources Dangote Group has said the court order does not prevent the ceremonial groundbreaking, although activities at the disputed site could be affected pending the hearing.

The project comes as Ethiopia, Djibouti and Dangote Group also advance plans for a separate $660 million fuel-storage and pipeline network linking Ethiopia and Djibouti, aimed at strengthening petroleum logistics between the two countries.

Dangote also has another flagship fertilizer megaproject in Ethiopia's Somali Region, which was announced on May 18 during a visit by Prime Minister Abiy Ahmed and Nigerian businessman Aliko Dangote to the Gode Industrial Complex.