Africa’s richest person, Aliko Dangote, has enlisted Engineers India Ltd (EIL) – majorly owned by the Indian government — to manage his proposed $16 billion refinery and petrochemical complex in Kenya, after the Indian firm’s involvement with his Lagos refinery.
The billionaire stated that construction on the refinery would begin this month and take less than four years to complete. Dangote’s Lamu project is a venture to expand his energy business footprint across Africa. The refinery’s services will not be limited to Kenya but will also extend across the East African market. The initiative is part of a broader pipeline of planned connections, and connections are also being made with Lamu and Djibouti.
Costing is estimated at around $15.5-$16 billion.
Dangote has stated that around 70% of the refinery’s cost is expected to be financed through debt, with the remaining 30% backed by equity. The project’s progress is also linked to not only engineering and supply, but the matter of financing. Beyond raising the capital, there is also a challenge of competing with cheaper imported fuel.
It has been said that some degree of protection from such imports would be necessary for the refinery to gain a foothold in Kenya’s market.
