Dangote Group is set to commence construction of its proposed $17 billion oil refinery in Lamu, Kenya, by the end of September, with the facility expected to be completed within three years.
Aliko Dangote disclosed the timeline on Monday during the opening of the initial public offering (IPO) of Dangote Petroleum Refinery and Petrochemicals FZE in Lagos, as the company begins expanding its refining footprint beyond West Africa.
The proposed refinery will be located on Kenya’s coast in Lamu and is expected to extend Dangote Group’s refining operations into East Africa. The project forms part of the group’s broader strategy to expand its energy business across the continent.
Dangote said the Kenya refinery is not the only energy infrastructure project being pursued by the group, disclosing plans for a 2,650-kilometre pipeline from Namibia through Botswana to South Africa. He added that work on another line extending to Zimbabwe would begin next month.
“There’s a lot of value in Africa. Africa is like a scratch card unless you scratch it, you will not see the use of it. The opportunities are immense,” Dangote said.
The proposed refinery is expected to replicate the scale and design of the Dangote Refinery in Lagos, currently Africa’s largest single-train refinery. The Kenyan project would significantly broaden Dangote’s refining presence from the Atlantic-facing West African market into the Indian Ocean corridor.
Dangote’s latest timeline represents an acceleration from an earlier estimate. In July, a spokesperson for Dangote Industries Limited said the $17 billion project could take about five years to complete.
The project has also attracted interest from East African governments. In August, Dangote offered regional countries a combined 30% equity stake, potentially representing about $1.5 billion of the project. Kenya is considering a 10% stake, while Ethiopia and Rwanda have also expressed interest.
Dangote’s latest expansion plans were disclosed as the refinery’s IPO commenced trading activities, with the public offer targeting about $1.6 billion and valuing the refinery business at almost $50 billion.