Nigerian businessman Aliko Dangote has proposed that his planned 700,000-barrel-per-day refinery in Lamu, Kenya, be listed on the Nairobi Securities Exchange (NSE). According to Dangote, this move would provide more Africans with an opportunity to own part of the project. The refinery, expected to be the largest of its kind in East Africa, is set to break ground on September 30, 2026.
Dangote emphasized the importance of listing businesses on African capital markets to allow more people on the continent to participate in their ownership. He noted that his businesses, which are fully owned by his group, have traditionally reinvested their earnings instead of paying dividends. However, with the new approach, other shareholders will be able to participate in the ownership and decision-making process.
The industrialist expressed concerns about the dominance of non-African companies and capital in the continent's businesses. He cited the example of mafia organizations taking over key sectors such as airlines, shipping, and ports. Dangote stressed that Africans need to invest in and own businesses on the continent rather than relying on external companies and capital.
Dangote's group is also preparing to list a new shipping business, which aims to address the inefficiencies in intra-African trade. He cited the high cost of transporting clinker from Nigeria to Ghana as an example, noting that it is more expensive than importing gypsum from Spain. The new shipping company will have an initial investment of $1.6 billion and will be open to African investors.
The shipping business will allow Africans to own a significant stake, with Dangote indicating that his group may sell additional shares if there is demand from African investors. He emphasized that the group is prepared to reduce its own stake as more investors come on board, with the possibility of Dangote's group owning as little as 20-25% of the business.
By giving other shareholders ownership, Dangote believes that they will be able to hold the company's leadership accountable. He noted that shareholders will have the freedom to replace the leadership with people they believe can perform better. This approach is intended to encourage greater African ownership of businesses and strengthen capital markets on the continent.
Dangote's proposal to list the Lamu refinery on the NSE is seen as a strategic move to promote African ownership and participation in the project. The listing is expected to provide a platform for Africans to invest in and benefit from the refinery's operations. With the project set to break ground soon, Dangote's vision for African ownership and participation is set to take shape.
Key points
- Aliko Dangote proposes listing his planned Lamu refinery on the Nairobi Securities Exchange to increase African ownership.
- The planned refinery is expected to be the largest of its kind in East Africa, with a capacity of 700,000 barrels per day.
- Dangote's group is also preparing to list a new shipping business to address inefficiencies in intra-African trade.
