Africa’s oil refinery industry is undergoing a remarkable transformation, particularly in the downstream sector. Several countries across the continent are investing heavily in building new refineries to reduce dependence on imported petroleum products, improve energy security, and capture more value from their own crude oil production. According to recent industry analyses, Africa is projected to add approximately 1.2 million barrels per day of refining capacity by 2030, signaling a significant shift in the continent’s energy landscape. Lets take a look at the projects that are under construction and under planning currently.
1. Uganda: Hoima Refinery
Uganda has taken a major step in its energy sector with the signing of an Implementation Agreement for the long-awaited Hoima Oil Refinery Project. The agreement, finalized between the Ministry of Energy and Mineral Development (MEMD), Uganda National Oil Company (UNOC), and UAE-based Alpha MBM, was signed at State House in the presence of President Museveni, who thanked the UAE investors for their commitment.
The refinery, to be built in Kabaale, Hoima District, will have a capacity of 60,000 barrels per day, developed in two phases, and is expected to be operational within three years. It will process crude oil from Uganda’s Albertine Graben, producing gasoline, diesel, and jet fuel, significantly reducing reliance on imports and enhancing national energy security. Supporting infrastructure will include a multi-product pipeline to Namwabula, storage facilities, and access roads. The project, estimated at $4 billion and fully equity-financed, positions Uganda as a regional hub for petroleum refining and distribution, with first commercial output anticipated around 2028.
2. Angola: Cabinda Refinery
Angola marked a significant milestone in its energy sector with the inauguration of the Cabinda Oil Refinery in September 2025. Located in the Malembo Plain of Cabinda Province, the refinery is a public-private partnership between UK-based Gemcorp, holding a 90% stake, and state-owned Sonangol with 10%. Phase one of the project, costing over $500 million, has a processing capacity of 30,000 barrels per day, producing diesel, jet fuel, naphtha, and heavy fuel oil for both domestic use and export. Phase two is planned to double capacity to 60,000 barrels per day, incorporating a hydrocracking unit to boost diesel and jet fuel output. The refinery addresses Angola’s reliance on imported refined products, which cost the country over $2 billion annually, and is expected to create thousands of jobs while supporting local skills development. Construction began in 2019, overcoming challenges from landmines, the COVID-19 pandemic, and inflation, positioning the refinery as a key step toward energy security and industrial growth.
3. Angola: Lobito Refinery
Angola is advancing its refinery infrastructure with the Lobito Refinery Project, a landmark energy initiative set to significantly boost the country’s refining capacity. Located in Lobito, the refinery will have a processing capacity of 200,000 barrels per day and is being developed under the project management of US-based engineering firm KBR. The contract, issued by Angola’s state-owned oil company Sonangol, covers engineering, procurement, and construction services, building on KBR’s two-decade-long partnership with Angola. The project aims to enhance Angola’s energy independence, reduce reliance on fuel imports, and position the country as a regional refining hub. KBR’s Front-End Engineering Design (FEED) phase has been completed, delivering a cost-competitive, environmentally conscious plan that meets both African and European product standards while reducing water consumption and wastewater by 30%. Upon completion, the Lobito Refinery will contribute to economic growth, generate significant employment, and support sustainable energy development in Angola.
4. Angola: Soyo Refinery
The Soyo Oil Refinery in Angola is a major project aimed at reducing the country’s reliance on imported fuels, which currently account for 80% of domestic consumption. Located in Zaire Province, the refinery is being developed by the private developer, U.S.-led Quanten Consortium. with a planned capacity of 100,000 barrels per day. Construction is scheduled to start once the site is fully demined, with associated infrastructure including roads, a 60–100 MW power plant, and a maritime terminal. The first phase is expected to produce 60,000bpd. CUrrently the project is inteh financing stage
The facility will produce Euro-5 grade cleaner fuels and is expected to commence production in the fourth quarter of 2025. The Soyo refinery is part of Angola’s broader strategy to enhance refining capacity alongside the 200,000 bpd Lobito facility, the 60,000 bpd Cabinda refinery, and the modernization of the 65,000 bpd Luanda refinery. These initiatives aim to strengthen energy security, stimulate economic growth, create jobs, and reduce the country’s fuel import bill while benefiting neighboring countries.
Reports indicate that the construction of the proposed 100,000 bpd Soyo refinery was under review due to constraints presented by the private developer, U.S.-led Quanten Consortium.
5. Senegal: second oil refinery
The Senegal Second Oil Refinery Project is a major initiative aimed at expanding the country’s refining capacity to process more locally produced crude. Announced by SAR Director General Mamadou Abib Diop, the new refinery will complement the existing 30,000-barrel-per-day Dakar facility, which no longer meets national fuel demand. Estimated to cost between $2–$5 billion, the project is in early planning, with construction expected around 2026 and operations by 2029. With a capacity of 4 million tonnes per year, it will boost SAR’s total output to 5.5 million tonnes. The project supports Senegal’s goal of reducing fuel imports following the start of offshore oil production at Sangomar.
6. Ethiopia: Gode Oil Refinery Project
The Gode Oil Refinery Project is a $2.5 billion development in Ethiopia’s Somali Regional State aimed at reducing the country’s heavy reliance on imported fuel. Led by China’s GCL in partnership with Ethiopian Investment Holdings, the refinery will produce 3.5 million tonnes of fuel annually using crude and condensate from the Hilala oil field. Prime Minister Abiy Ahmed, who launched construction in 2025, called it a milestone for Ethiopia’s industrial growth and energy security. Located in the resource-rich Ogaden Basin, the refinery forms part of Ethiopia’s 10-year development plan and is expected to supply both domestic and regional markets.
7. Nigeria: The Ogun State Refinery
The Ogun State Refinery is a major new petroleum project planned for Tongeji Island in Ipokia, Ogun State, set to become Nigeria’s second-largest refinery after Dangote. Developed by Gasoline Associates International Limited (GAIL), the facility will begin with a refining capacity of 100,000 barrels per day, with plans to expand to 450,000 bpd. The refinery aims to boost domestic production of PMS, AGO, LPG, and jet fuel, sharply reducing Nigeria’s dependence on imports. Strategically located near the Benin border, the project is expected to create thousands of jobs and position Ogun State as a rising industrial and energy hub.
8. Zambia: Ndola Crude Oil Refinery
The Ndola Oil Refinery is a landmark project following Zambia’s agreement to develop a $1.1 billion Crude Oil Refinery and Energy Complex in Ndola, located in the heart of the Copperbelt region. Announced by the government, the project will feature a facility capable of processing 60,000 barrels of crude oil per day, enough to meet the country’s entire fuel demand while generating surplus supplies for export to neighbouring states, according to Reuters. The refinery is expected to strengthen Zambia’s energy security, reduce reliance on imports, and position Ndola as a key regional hub for petroleum production and distribution.
9. Nigeria: The Abia Modular Refinery
The Abia Modular Refinery is a planned project located inside the Abia Industrial and Innovation Park in Owaza, where the Abia State government and private partners aim to establish a 10,000-barrel-per-day processing facility. In August, Governor Alex Otti reaffirmed his commitment to ensuring the refinery’s timely delivery, noting that the project—undertaken by HSI Energies Group—will create about 1,000 direct jobs alongside numerous indirect opportunities.
By November, the refinery had secured full federal approval, with compensation for affected landowners completed and site preparation already underway. Although full construction has not commenced, the project is progressing through equity sourcing, debt financing, and other preparatory stages, with multiple sources indicating that construction is expected to begin in 2026.
10. South Sudan: Tharjiath field oil refinery
South Sudan plans to build a new US$3 billion oil refinery at the Tharjiath field in Unity State to boost domestic fuel supply and reduce dependence on Sudan’s export infrastructure. The project, developed through a public-private partnership, will give Nilepet a 30% stake while Quad Layer Holdings takes 70% and builds key road links. Feasibility studies will determine final capacity before contracts are signed. Oil remains vital to the economy, making up 95% of government spending. In a parallel development, Chinese firm Sokec has signed an MoU with Nilepet to invest in modern refinery and storage facilities, further strengthening the sector.
11. Ghana: Jomoro Oil Refinery
Ghana has launched construction of its US$12 billion oil refinery in Jomoro, the first phase of a planned US$60 billion Petroleum Hub. The project includes a 300,000-barrel-per-day refinery, a petrochemical plant, and major storage and port facilities, positioning Ghana—alongside Senegal—as a rising petroleum hub in West Africa. Developed with the TCP-UIC Consortium, the hub aims to meet regional fuel demand by 2036. The megaproject is expected to create hundreds of thousands of jobs and boost Ghana’s GDP by up to 70% when fully completed. It also aligns with Africa’s broader drive to build refineries and reduce reliance on imported fuel.
Strategic Implications
The development of these refineries has far-reaching implications for Africa. By refining more crude oil domestically, countries can retain more value from their natural resources, reduce fuel import costs, and shield themselves from global supply shocks. The construction and operation of these facilities also provide employment opportunities and technology transfer, with training programs preparing local workers to operate complex refinery infrastructure. Furthermore, as refining capacity grows, intra-African trade in refined petroleum products is expected to increase, creating new economic linkages between neighboring countries.
Challenges and Risks
Despite the potential benefits, refinery projects in Africa face challenges. Large-scale development requires significant capital investment, often necessitating complex public-private partnerships and foreign financing. Technical expertise is critical, and shortages in skilled labor can delay construction and commissioning. Regulatory uncertainty, political instability, and shifts in energy policy can complicate project execution. Moreover, global market dynamics, including fluctuating oil prices and the ongoing energy transition toward renewable energy, pose additional risks.
Conclusion
Africa is entering a new era in its oil industry, shifting from crude exporters to processors capable of refining and marketing petroleum products locally. Countries such as Angola, Uganda, Ghana, and Nigeria are leading this transformation with projects that promise to enhance energy security, stimulate industrial development, and create jobs. Successfully executing these initiatives will require careful management of financial, technical, and regulatory challenges, but their completion has the potential to reshape the continent’s energy sector and strengthen its economic resilience.
