Dangote Group will begin work on its proposed $17 billion oil refinery in Kenya by the end of September, with the facility expected to be completed within three years.
Aliko Dangote, Africa’s richest man, disclosed this on Monday during the opening of the initial public offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE in Lagos, Nigeria’s commercial capital.
The announcement comes as the Dangote refinery’s IPO begins trading activities today, with the public offer expected to raise about $1.6 billion and value the business at almost $50 billion.
The IPO has also triggered an unprecedented digital race among Nigerian stockbrokers, banks and fintech companies seeking to participate in the share sale, with the transaction targeting up to 10 million investors.
The proposed refinery will be located in Lamu on Kenya’s coast, cost an estimated $17 billion and is expected to take about three years to complete, expanding Dangote’s refining operations from West Africa into East Africa.
Dangote said work on the facility is expected to begin by the end of the month, with the project forming part of his broader plan to expand the group’s energy business across Africa.
The billionaire also disclosed plans to expand the group’s energy infrastructure beyond the Kenya refinery, including a 2,650-kilometre pipeline that will run from Namibia through Botswana to South Africa.
The proposed Kenya refinery is part of Dangote Group’s broader expansion across Africa and is expected to replicate the scale and design of the Dangote Refinery in Lagos, Nigeria, which is currently Africa’s largest single-train refinery.
David Ndii, Kenyan President William Ruto’s economic adviser, disclosed the proposal at a capital markets forum in Nairobi, saying Kenya would take a 10% stake while Ethiopia and Rwanda had also expressed interest.
The Dangote Petroleum Refinery and Petrochemicals initial public offering has triggered an unprecedented digital race among Nigerian stockbrokers, banks and fintech companies seeking to participate in what could become the country’s largest retail-driven share sale.
Investment platform Bamboo experienced login failures on Monday after a surge of users flooded the app to participate in the Dangote Refinery and Petrochemicals FZE public offer.
