Dangote group targets Cameroon’s oil sector with new investments

The Dangote Group is in advanced negotiations to inject substantial capital into Cameroon’s oil industry, focusing on storage and transportation infrastructure. This initiative follows discussions in Yaoundé between the group’s leadership and the Cameroonian Prime Minister, Joseph Dion Ngute, and aligns with plans to expand the company’s cement production capacity in Douala.

Expanding beyond cement: a strategic pivot

The Nigerian industrial giant is making clear its intention to diversify its African portfolio with a major push into Cameroon’s energy sector. Devakumar Edwin, Dangote Group’s Vice President for Oil and Gas, outlined these ambitions during a high-level meeting with Prime Minister Joseph Dion Ngute in the capital.

The proposed investments would cover both storage facilities and transportation networks, addressing critical gaps in the country’s energy infrastructure. This move comes as Cameroon seeks to strengthen its energy security and meet rising demand from a booming construction sector.

Boosting local production

Dangote is also set to double its cement production capacity in Douala, reinforcing its existing footprint in the Cameroonian market. The expansion reflects the company’s confidence in the country’s economic trajectory and its long-term commitment to supporting infrastructure development.

National refinery at a crossroads

The Société Nationale de Raffinage (Sonara), Cameroon’s sole refinery, has been operating at reduced capacity since a major fire in 2019. The facility is undergoing a comprehensive modernization program to restore operations and ensure long-term viability.

The potential partnership with Dangote presents a dual opportunity: immediate relief for the energy market through increased supply, and a pathway to revitalize Sonara’s operations. The government has earmarked 700 billion Central African CFA francs for Sonara’s reconstruction, aiming to restore full refining capacity and reduce reliance on imported fuels.

Balancing act ahead

While Dangote’s involvement offers a lifeline, officials emphasize the importance of maintaining Sonara’s central role in Cameroon’s energy strategy. The goal is to leverage Dangote’s expertise and resources to stabilize supply in the short term, while ensuring Sonara’s revival remains a national priority.