Lamu (Kenya) (AFP) - Africa’s richest man was set to break ground on a new $16-billion mega-refinery in Kenya on Wednesday that he says will mark a vital step towards the continent’s self-sufficiency in fuel.

Aliko Dangote created Africa’s biggest oil refinery in his native Nigeria and the east African version will have a capacity of 700,000 barrels per day – larger than any in Europe.

It is being built on the Indian Ocean coast at Lamu, also the site of a deepwater port, with a target of 30 months for completion.

The refinery project has already faced a lawsuit from a local community over land rights. A court ruling published on Monday said the ground-breaking could go ahead, but the case will continue.

Greenpeace and other environmentalists have also raised objections over its impact.

Dangote dismissed the challenges on Tuesday, telling reporters: “There’s actually no problem with these sort of cases… There are people who don’t want the development of Africa.”

Dangote and Kenyan President William Ruto were joined by regional leaders including Ethiopian Prime Minister Abiy Ahmed and Ugandan President Yoweri Museveni for the ceremony.

But the project is emerging amid complex regional rivalries, with Uganda and Tanzania announcing a rival $20-billion refinery and energy hub at the Tanzanian port of Tanga in August, although details of the venture remain sketchy.

Uganda will start producing its first oil in the coming weeks and has almost completed a pipeline to the Tanzanian coast in collaboration with French giant TotalEnergies.

As a result, most of the crude being refined at Dangote’s Kenyan refinery will have to come by ship from other regions, at least initially.

Dangote told reporters on Tuesday that it would source crude from the Middle East, the United States and other areas – but would be ready as countries like Kenya and Mozambique start producing more oil.

He had initially considered building his refinery in Tanzania but finally chose Lamu for its deep seaport and “solid land”, he told reporters on Tuesday.

- ‘A start-up’ -

He framed the refinery as a vital step towards Africa reducing its reliance on imports of refined fuel and foreign expertise.

“By 2030, the majority of African countries will be self-sufficient (in fuel). It does not matter where it is refined, but it should be in the African continent, on the soil of Africa,” he said.

“If anybody is doing a big project going forward, you don’t have to go and bring Chinese or Indians and build it for you,” he added.

He insisted the Kenyan refinery would be just a small part of meeting the demand that Africa will create as its economy grows.

“When you talk about 700,000 barrels per day, it’s actually small. For the region, it’s a big refinery, it’s a big investment, but it is a start-up,” he said.

He said the refinery would also include a 1,000-megawatt power facility, with half the production going back into the Kenyan grid.