Welcome to the Monday edition of Suhail Capital, our flagship brief of the latest developments bridging Africa and the Gulf
Aliko Dangote Offers 30% Stake to East Africa for Regional Oil Refinery
Aliko Dangote, Nigerian businessman and Africa’s richest individual, is kickstarting plans for an oil refinery in Lamu, Kenya. Mirroring his signature refinery in Nigeria, Dangote has offered East African countries a 30% equity stake in the $16 billion project, which aims to process 700,000 barrels per day.
The offer marks a significant milestone in East Africa’s efforts to become a net oil producer. For Gulf states investing in East Africa, it would also act as a strategic opportunity for deeper energy collaboration. The UAE in particular is likely to benefit, given both its record investments in East Africa and existing collaborative history with Dangote.
DRC, M23 chart out a path toward peace negotiations
Following five days of discussions in Switzerland, the Democratic Republic of the Congo (DRC) and the Rwanda-backed M23 rebel group have released a joint statement pledging to negotiate toward “comprehensive peace” and “conflict resolution,” according to the BBC. Such negotiations would utilize the previous Doha Framework Agreement as a launch pad. The discussions were attended by the DRC, M23, Switzerland, the United States, Qatar, and the African Union Commission.
The statement reflects the rising likelihood of stability being achieved in the DRC’s mineral-rich regions, with the country being home to the highest reserves of critical minerals such as cobalt and copper. Gulf investors are keen to see such peace talks persevere to deter risk as part of their mineral gambit in Africa; Qatar is most potently poised, given its heavy involvement in the peace talks.
Ethiopia secures preliminary agreement for eurobond restructuring
An agreement in principle (AIP) was struck between the Ethiopian government and private investors over the restructuring of a $1 billion eurobond. Currently being reviewed by the Official Creditor Committee (OCC), the AIP includes a “New Money Warrant” that allows bondholders to buy into a future Ethiopian eurobond of up to $1 billion.
The AIP marks a significant step forward in Ethiopia’s wider debt restructuring and elevates monetary confidence in Addis Ababa’s investment landscape. This is particularly critical for the UAE, already a leading investor in Ethiopia and increasingly a close political ally of Addis Ababa.
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