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Africa’s wealthiest person, Aliko Dangote, who dreamt of taking his oil refinery business public, has received a major shot in the arm with the endorsement of Standard Bank.The $50bn initial public offering (IPO) is largely seen as a referendum on the liquidity of African capital markets, and Standard Bank — which marshals R3.6-trillion in assets, making it the continent’s biggest lender by that measure — said on Wednesday it will play a leading role in the IPO slated for September.The bank’s Nigerian business, which trades under the Stanbic brand, is the lead adviser to the proposed IPO, advising on the structuring, execution and marketing.The lender, which has the biggest corporate and investment banking franchise on the continent, also provides advisory support to Dangote Petroleum Refinery as it scales up operations, optimises its capital structure and establishes itself in energy and petrochemical markets.Standard Bank Group CEO Sim Tshabalala described the refinery, located in Lagos, as “a wonder of the world”, adding that the mega IPO reinforces the banking group’s position as a leading catalyst for capital formation on the continent.He said the transaction also reflects the group’s strategy to mobilise domestic and international capital into transformative assets.“It reflects a continued commitment to deploying capital into strategic sectors — particularly energy — to strengthen Africa’s energy security and unlock long-term development opportunities. The bank’s approach here is not primarily about deploying its own balance sheet but about mobilising capital efficiently,” Tshabalala told Business Day.“Acting as lead adviser allows the bank to bridge African opportunities with international investors — sovereign wealth funds, pension funds, and institutional asset managers — while also deepening local participation.”Energy self-sufficiencyThe IPO is designed to fuel the Dangote Group’s plans to invest $40bn over the next five years to increase its urea fertiliser production and expand the refinery, as Dangote, whose wealth is estimated at $61bn by Bloomberg, forges ahead with his long-held ambition to transform Africa from a net importer of refined fuel into a self-reliant continent.Tshabalala said the business case of the refinery speaks for itself.“At 700,000 barrels per day, it is the largest refinery on the continent and is already reshaping Nigeria’s fuel supply dynamics,” he said. “The country has historically depended heavily on imported refined products; that is now changing rapidly. “Domestic supply has risen sharply, reducing import dependence, easing pressure on foreign exchange and strengthening energy security.”Like many lenders, Standard Bank has faced scrutiny of its financing of fossil fuel projects. Still, it has also been spending billions of rand a year on sustainable energy projects, which is expected to top R450bn by 2028. Tshabalala, who has been at the helm since 2013, a period that has seen the group add almost R2-trillion in assets, said the lender remains on track to meet its stated targets of limiting upstream oil and gas exposure in its broader energy portfolio.He said this is being achieved alongside significant scaling up of renewable energy financing, with capital deployed into projects across markets such as South Africa, Zambia, and Botswana.Balanced strategy“Standard Bank’s approach to oil and gas financing is guided by a balanced energy strategy — supporting Africa’s immediate energy needs while advancing a just energy transition,” he said.“The continent faces a dual imperative: meeting rapidly growing energy demand while addressing the climate challenge. For many countries, fossil fuels remain central not only to energy systems but also to fiscal stability. In that context, transition fuels such as natural gas will continue to play a critical role.”David Bird, CEO of the Dangote Petroleum Refinery, said Tshabalala’s visit highlights the importance of long-term partnerships in delivering large-scale industrial projects.“Standard Bank has been one of our strongest supporters throughout the history of the refinery and the broader Dangote Group,” Bird said in a statement.“This visit was an opportunity to demonstrate what that support has enabled. Seeing is believing, and it allows our partners to appreciate the scale of what has been achieved.”
