Ugandan President Yoweri Museveni has expressed support for the construction of a proposed $17-billion regional oil refinery to boost industrialisation and energy security in East Africa.

According to a statement issued by the State House on Sunday, Museveni made the remarks during a meeting with visiting Nigerian industrialist Aliko Dangote, who proposed the project. Museveni said the refinery would form part of broader efforts to advance regional integration, value addition and industrial development across Africa.

He stressed the need for African countries to move away from exporting raw materials and instead focus on local processing to create jobs and strengthen their economies.

According to the statement, the proposed refinery is expected to cost between $15 billion and $17 billion, with a planned processing capacity of 650,000 barrels of crude oil per day.

While the proposal has looked viable on face value, questions have been raised about why Africa’s richest man cannot think of a similar facility in own country, Nigeria.

The facility is intended to serve Uganda, Kenya, Tanzania, Ethiopia, South Sudan, the Democratic Republic of the Congo and other regional markets.

Dangote said consultations with governments in the region were ongoing, adding that several locations, including Tanga, Mombasa and Lamu were under consideration for the project.

“This is a continuation of discussions we held with regional leaders in Nairobi (Kenya). We want to establish a refinery that can support East Africa’s growing energy needs,” Dangote said.

The regional initiative comes at a time when Uganda is preparing for its first oil production, with development work at the Kingfisher Oil Field nearing completion.

• A Tell Media / Xinhua report