Kampala — Uganda has approved the participation of domestic investors in the initial public offering (IPO) of Dangote Petroleum Refinery, expanding the Nigerian energy company’s effort to attract African investors as it seeks to raise $1.6 billion.

Uganda’s Capital Markets Authority (CMA) said it had approved the offer of securities under the IPO of Dangote Petroleum Refinery and Petrochemicals FZE. The approval followed an application submitted on behalf of the refinery by Stanbic IBTC Capital Limited.

The IPO, launched by Nigerian billionaire Aliko Dangote in September, is being marketed as a “people’s IPO” and is intended to raise funds to more than double the refinery’s capacity to 1.4 million barrels per day.

The offering is expected to be Africa’s largest IPO, giving investors across the continent an opportunity to participate in one of the region’s most significant energy infrastructure projects.

Uganda’s approval follows a similar move by Kenya, where the capital markets regulator recently approved a short-form prospectus allowing Kenyan investors to participate through a global depository receipt structure.

A Pan-African Investment Opportunity

The growing participation of East African investors highlights the increasingly regional nature of Dangote Refinery’s capital-raising strategy.

Built by Dangote Group over roughly a decade at a reported cost of $20 billion, the refinery has become a major player in Nigeria’s petroleum industry since beginning operations in 2024.

Located on the outskirts of Lagos, the facility currently has the capacity to process 700,000 barrels of crude oil per day.

Its expansion to 1.4 million barrels per day would significantly increase its ability to supply refined petroleum products to Nigeria and potentially strengthen its role in regional fuel markets.

For investors in Uganda and other African markets, the IPO provides exposure to a large-scale energy asset while also reflecting the growing push to deepen African capital markets and channel domestic savings into major infrastructure projects.

Source: Reuters

Reporting: Vincent Mumo Nzilani& Elias Biryabarema

Editing: Lincoln Feast