Dangote jets into Zimbabwe for US$1bn mega deal

STAFF WRITER

Africa’s richest man, Nigerian billionaire Aliko Dangote, is expected in Zimbabwe this week to explore a potential US$1 bn industrial investment that could see his Lagos-based conglomerate establish an integrated cement, coal mining and power generation complex, in what would mark one of the largest private sector commitments to the country in recent years.

The high-profile visit, confirmed by Special Presidential Investment Adviser to the UAE, Dr Paul Tungwarara, signals a major breakthrough in Harare’s drive to attract heavyweight investors and accelerate progress toward Vision 2030, President Emmerson Mnangagwa’s goal of transforming Zimbabwe into a prosperous, industrialised upper middle-income economy.

“We are expecting him on the 12th of November, and he is expected to meet His Excellency, President Mnangagwa. He will then present his investment plan to the President. Thereafter, we will then be able to say and talk about some of the investments he is pursuing in Zimbabwe,” Dr Tungwarara said.

According to Dr Tungwarara, Dangote will hold high-level meetings with the President, senior government ministers and private sector leaders to map out the contours of the investment deal. The discussions are expected to centre on mining concessions, fiscal incentives, work permits for technical experts, and the overall framework to guarantee security of investment.

If concluded, the planned venture,  expected to cost between US$800 million and US$1 billion, would establish a cement manufacturing complex, complete with a limestone quarry, coal mine, and power station, feeding directly into Zimbabwe’s infrastructure and construction boom.

Analysts say the project could create thousands of jobs and spur activity across key sectors, from mining and construction to energy and logistics.

The visit forms part of Dangote’s renewed Southern African expansion drive, following similar moves in Zambia and South Africa. The Nigerian mogul, who runs Dangote Industries Limited, already commands extensive operations in 17 African countries spanning cement, sugar, salt, flour, pasta, beverages, fertiliser, real estate, oil and gas, and logistics.

His group also operates a 650,000-barrel-per-day oil refinery, a petrochemical plant, and a fertiliser complex in Nigeria, three of Africa’s largest industrial assets.

Sources close to the deal say Dangote’s revived interest in Zimbabwe stems from new overtures made by Bard Santner Markets Inc, a Harare-based financial advisory firm, and Josephine Mahachi, a Zimbabwean journalist-turned-business facilitator who has been instrumental in brokering high-level investment connections for the country.

The discussions reportedly began during the 32nd Afreximbank Annual Meetings held in Abuja, Nigeria, from June 25–28 this year, where Dangote delivered a keynote address urging African nations to deepen intra-continental investment and trade under the African Continental Free Trade Area (AfCFTA) framework.

A Bard Santner delegation, led by CEO Senziwani Sikhosana, met Dangote on the sidelines of the Abuja meetings to explore potential collaboration.

That engagement set the stage for a follow-up visit to Dangote Group’s headquarters in Lagos, where the team, including Tatenda Hungwe and Lucia Chingwaru — gained insights into the conglomerate’s regional operations.

Sikhosana confirmed that the dialogue has since advanced, noting that the Zimbabwean market presents “a compelling opportunity for long-term industrial investment” given its strategic location, mineral wealth, and regional trade linkages.

This is not Dangote’s first foray into Zimbabwe.

He previously visited the country in 2015 and 2018, expressing interest in setting up a cement plant and coal mine, but the projects stalled amid regulatory bottlenecks and policy uncertainty at the time.

However, policy reforms under President Mnangagwa, including the Zimbabwe Investment and Development Agency (ZIDA) framework and new incentives for large-scale investors — appear to have revived confidence among regional and global investors.

Government sources say Harare is now eager to fast-track the engagement, viewing Dangote’s entry as a strategic endorsement of Zimbabwe’s reform trajectory and a potential anchor investment for the broader industrialisation agenda.

At the heart of Dangote’s model is integration, linking raw materials, energy, and finished goods within a single value chain. In Zimbabwe, the plan reportedly includes sourcing limestone and coal locally, using the coal mine to fuel the power station, which would in turn supply the cement plant and potentially feed excess power into the national grid.

Such vertical integration could ease Zimbabwe’s perennial energy shortages while reinforcing import substitution and infrastructure self-sufficiency.

Dangote’s regional expansion comes at a time when African industrialists are reasserting control over value chains that were historically dominated by multinational corporations. His Zimbabwe interest dovetails with AfCFTA’s ambition to unlock intra-African trade, currently estimated at just 15% of the continent’s total trade.

Analysts say his Zimbabwe venture could serve as a template for cross-border African industrial partnerships, leveraging local resources and continental capital to drive sustainable growth.

If the Zimbabwe deal progresses beyond the preliminary phase, it could represent a turning point for both Dangote and the Mnangagwa administration.

As Harare rolls out the red carpet for one of Africa’s most influential industrialists this week, attention will turn to whether both sides can finally strike a deal that not only makes business sense but also redefines Zimbabwe’s industrial future.