Nigerian billionaire and industrialist Aliko Dangote is planning a major expansion of his energy infrastructure business, with a proposed $3.5 billion petroleum pipeline stretching 2,650 kilometres across Southern Africa.
The proposed pipeline is designed to improve the movement of refined petroleum products across the region, particularly to landlocked markets where high transportation costs and border delays continue to drive up fuel prices.
Dangote disclosed the plan during an interview with Bloomberg TV’s Francine Lacqua, as his group advances plans to expand its energy operations beyond Nigeria.
Pipeline Network to Link Key Southern African Markets
The planned 2,650-kilometre route is expected to run through Namibia, Botswana and South Africa, forming part of a much larger pipeline strategy covering about 4,000 kilometres across Sub-Saharan Africa.
The broader network is intended to create more efficient routes for delivering refined fuel to inland economies, reducing the dependence on costly road transportation.
Dangote highlighted the impact of current logistics challenges, noting that consumers in landlocked countries such as Zimbabwe can face exceptionally high fuel prices because products have to travel long distances by road and pass through multiple border points.
Expansion Extends to East Africa
Dangote’s pipeline ambitions also extend beyond Southern Africa.
The group is preparing to develop a pipeline connecting Djibouti with Ethiopia, supported by fuel storage facilities, with construction expected to commence within the next two months.
Another planned pipeline will connect Lamu in Kenya with inland markets in the Horn of Africa, strengthening the group’s proposed regional fuel distribution network.
Up to $50 Billion Investment Planned
The pipeline expansion is part of a much larger capital investment programme spanning Dangote’s industrial businesses.
The group expects to deploy between $46 billion and $50 billion across its operations, with energy infrastructure receiving significant attention.
A key objective is to build an integrated system linking refining, storage and transportation, allowing refined petroleum products to reach African markets more efficiently while reducing reliance on imported fuel and expensive long-distance trucking.
Dangote Refinery Funding Expansion
The expansion plans come as Dangote’s refining business moves to raise additional capital.
The refinery’s public share offering is targeting 10 million individual African investors, following a private placement that reportedly generated $3.7 billion in demand.
The energy business is expected to maintain its primary listing on the Nigerian Exchange, while the group is targeting a New York listing by 2030.
If implemented, the proposed pipeline network would significantly expand Dangote’s role in Africa’s downstream energy market, positioning the group not only as a major refiner but also as a potential regional distributor of refined petroleum products.
