Aliko Dangote, Africa’s wealthiest individual, has appointed Engineers India Ltd (EIL) to oversee the management of his ambitious $16 billion refinery and petrochemical complex in Kenya. This collaboration follows EIL’s previous engagement with Dangote’s Lagos refinery, highlighting the Indian firm’s growing role in significant energy projects across Africa.
Costing is estimated at around $15.5-$16 billion. 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.
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.
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. 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.
