Africa’s richest man, Aliko Dangote, is set to commence construction of a $16 billion oil refinery in Kenya, describing the project as a major step towards reducing Africa’s dependence on imported fuel.

The groundbreaking ceremony for the facility is scheduled to take place on Wednesday in Lamu, a coastal area where Kenya is also developing a major port.

The proposed refinery is expected to have a processing capacity of 700,000 barrels of crude oil per day, which would make it larger than any refinery currently operating in Europe.

The project has faced opposition from a local community over land rights, with the dispute still before the courts. A ruling published on Monday, however, cleared the way for the groundbreaking to proceed while allowing the legal case to continue.

Environmental groups, including Greenpeace, have also raised concerns about the potential impact of the project.

Dangote dismissed the challenges during a press briefing on Tuesday, saying some opposition to major developments was driven by resistance to Africa’s economic progress.

Lamu was selected after Tanzania and Kenya’s port city of Mombasa were considered as possible locations. Dangote said the Lamu site offered better conditions, including cleaner water, solid ground and access to deep-sea waters.

The refinery is also expected to include a 1,000-megawatt power plant, with about half of the electricity generated projected to be supplied to Kenya’s national grid.

Dangote said the project would contribute to Africa’s efforts to achieve greater self-sufficiency in fuel production and reduce dependence on foreign expertise.

He projected that most African countries could become self-sufficient in fuel by 2030, arguing that refining crude oil within the continent would strengthen Africa’s capacity to meet its growing energy needs.

Dangote also said African countries should increasingly develop major infrastructure projects using local expertise rather than relying heavily on foreign contractors.

The proposed refinery has raised questions about the availability of crude oil in East Africa, where major oil exploration and production activities are still developing.

Dangote said the facility would obtain crude from several international sources, including the Middle East and the United States, while remaining positioned to process oil from countries such as Kenya, Tanzania and Mozambique as their production expands.

He said Africa could not afford to wait until its population and energy demand increased significantly before investing in refining capacity.

Dangote also cited concerns over potential restrictions on diesel exports from the United States as part of the need for African countries to strengthen their own energy supply chains.

Despite its planned 700,000-barrel-per-day capacity, Dangote described the refinery as relatively small compared with the potential demand that Africa’s growing population and economy could generate.

“For the region, it’s a big refinery, it’s a big investment, but it is a start-up,” he said.