Grenada PM Lauds Dangote Refinery, Eyes Caribbean Collaboration

A New Era of Caribbean Collaboration

“The visit shows that many countries are proud of what we have been able to achieve because a lot of countries have been unable to deliver their refineries..."

Aliko Dangote meets with Grenada's PM to discuss historic partnership between Dangote Group and the Caribbean Community, unlocking new opportunities for trade and investment.

Aliko Dangote, president of Dangote Group, recently welcomed Dickon Mitchell, Prime Minister of Grenada and Chairman of the 15-member Caribbean Community, to the Dangote Petroleum Refinery on October 10. This visit was significant, as it aimed to explore potential partnerships between Dangote's industries and Caribbean countries.

During the visit, Prime Minister Mitchell praised the Dangote Petroleum Refinery and Petrochemicals as a game-changer for industrialization and manufacturing in developing countries. Dangote described the visit as symbolic, noting that many Caribbean countries are beginning to recognize the potential for collaboration.

The partnership discussions focused on cement and fertilizer production, areas where Dangote Industries has expertise. This collaboration could boost economic growth and industrial development in the Caribbean region.

Areas of Discussion:

Partnership Opportunities: Exploring collaborations between Dangote Industries and Caribbean countries

Industrialization: Dangote Petroleum Refinery and Petrochemicals' role in driving industrial growth

Economic Growth: Potential impact of partnership on Caribbean economies

Dickon Mitchell, the Prime Minister of Grenada and Chairman of the Caribbean Community, leads a significant economic and political union consisting of 15 member states and five associated members across the Americas, the Caribbean, and the Atlantic Ocean.

Aliko Dangote, President of Dangote Group, recently welcomed Mitchell to the Dangote Petroleum Refinery, deeming the visit highly significant. The visit highlighted the growing interest of Caribbean nations in establishing their own refineries, as many have already discovered crude oil reserves. This development is expected to empower these countries to break the cycle of exporting crude oil while importing refined products.

Dangote's refinery, the largest in Africa, has been expanding its crude oil supply sources beyond Brazil, engaging in discussions with Libya and exploring options in Angola. The refinery aims to refine 650,000 barrels of crude oil per day, with plans to dedicate 53% of its capacity to petrol production. This partnership with Caribbean nations could potentially transform the energy landscape in the region.

Takeaways:

Caribbean Community Expansion: Dangote's partnership with CARICOM member states could boost economic growth and industrial development in the region.

Refinery Capacity: Dangote Refinery aims to refine 650,000 barrels of crude oil per day.

Petrol Production: 53% of the refinery's capacity will be dedicated to petrol production.

“The visit shows that many countries are proud of what we have been able to achieve because a lot of countries have been unable to deliver their refineries.

“It shows their pride in seeing a Black person like them at the Caribbean, although I am from Nigeria, succeed,” Dangote said.

Adding that, “for them, this is a dream, especially as many Caribbean countries are beginning to discover oil but still depend largely on exporting crude while importing petroleum products, which is costlier than in America.

“Their dream is to set up a refinery, perhaps not of this size, but one that would cater to their people.

“There are numerous partnerships in place. He is not only the Prime Minister of Grenada but also the Chairman of the Caribbean Community (CARICOM).

“We are exploring collaboration in areas such as cement and petroleum, including the possibility of buying crude from them while selling some of our petroleum products to them.

“We already export to the US, Mexico and other regions, so there is significant collaboration we are looking to develop between us and them.”

Dickon Mitchell, Prime Minister of Grenada and Chairman of the Caribbean Community, has praised the Dangote refinery as a vital investment in industrialization and manufacturing, crucial for the industrial growth of developing countries. He emphasized that investments like this can empower Africa and other developing nations to break free from the cycle of exporting raw materials and importing finished products from developed countries.

Mitchell's statement highlights the significance of the Dangote refinery, which is set to become the largest single-train refinery in the world, processing 650,000 barrels of crude oil per day. This project has the potential to supply 100% of Nigeria's oil needs and even have surplus products for export. By reducing reliance on imported refined products, developing countries can redirect resources towards domestic growth and development.

The Dangote refinery's impact extends beyond Nigeria, serving as a model for other developing countries to follow. By investing in industrialization and manufacturing, these nations can create jobs, stimulate economic growth, and reduce dependence on external markets. Mitchell's vision aligns with the refinery's goals, aiming to transform the economic landscape of Africa and the Caribbean region.

Benefits of the Dangote Refinery:

Job Creation: 135,000 permanent jobs in the region

Economic Growth: Reduces reliance on imported refined products, stimulating domestic growth

Industrialization: Serves as a model for other developing countries to invest in manufacturing

Self-Sufficiency: Supplies 100% of Nigeria's oil needs, with surplus products for export 

“This is an incredible achievement and a testament to Mr. Dangote's vision, not just for his company, but for Nigeria and Africa as a whole,” the prime minister of Grenada said.

Dickon Mitchell, Prime Minister of Grenada and Chairman of the Caribbean Community, is bullish on Nigeria's future prospects. He's particularly impressed by the number of young Nigerians being trained and employed at the Dangote refinery and fertilizer plants. This development is a significant boost to Nigeria's economy, as it addresses the critical issue of youth unemployment.

Mitchell also revealed that the Caribbean Community is keen to partner with the Dangote Group to propel economic growth in the region. By collaborating with Nigeria's business leaders, the Caribbean Community aims to tap into the country's expertise in industries like cement and fertilizer production. This strategic partnership could potentially transform the economic landscape of both Nigeria and the Caribbean region.

Nigeria's economic reforms are already showing promise, with the World Bank committing $2.25 billion in financing to support the country's economic stabilization and social protection programs. With sustained reforms and investments in critical sectors, Nigeria is poised to overcome its economic challenges and unlock its vast potential.

Areas of Partnership:

Cement Production: Dangote Group's expertise in cement production can help boost construction and infrastructure development in the Caribbean region.

Fertilizer Production: Partnership opportunities in fertilizer production can enhance agricultural productivity and food security in the Caribbean.

Economic Growth: Collaborations between Nigeria and the Caribbean Community can stimulate economic growth, create jobs, and reduce poverty.

“One of the reasons I am here is to pursue synergies and partnerships between the diaspora and Africa, particularly in areas such as the refinery, cement and fertiliser,” he added.

The Prime Minister highlighted the vast potential for growth and cooperation between the Caribbean and Africa through strategic partnerships. This collaboration can unlock new opportunities for trade, investment, and economic development, ultimately strengthening the bond between the two regions. By working together, they can harness the expertise and resources of both continents to drive sustainable growth and prosperity.

Some key areas where partnerships can be forged include:

Trade and Investment: Enhancing trade relations and facilitating investment between Africa and the Caribbean.

Industrialization and Manufacturing: Accelerating industrialization and manufacturing in both regions.

Tourism and Cultural Exchange: Promoting tourism and cultural exchange programs to foster people-to-people connections.

Economic Development: Supporting economic development and poverty reduction initiatives in both regions.

The African Export-Import Bank (Afreximbank) has already taken steps to facilitate this partnership, approving $1.5 billion in funding for participating Caribbean states. This move is expected to boost trade and investment between the two regions, creating new opportunities for growth and development.