Dangote tables US$1bn mega deal to ED

LIVINGSTONE MARUFU

Africa’s richest man, Aliko Dangote, yesterday tabled a potential US$1 bn industrial investment plan in Zimbabwe that could see his Lagos-based conglomerate,  Dangote Industries Limited, establish an integrated cement, coal mining, and power generation complex, in what would rank among the country’s largest private-sector commitments in over two decades.

Dangote’s high-profile visit to Harare yesterday, which included meetings with President Emmerson Mnangagwa, key Cabinet ministers, and business leaders, marked a significant breakthrough in Zimbabwe’s re-engagement and industrialisation drive under Vision 2030, Mnangagwa’s blueprint to transform the economy into a prosperous, upper-middle-income nation.

Speaking after meeting President Mnangagwa, Dangote said his renewed interest stemmed from “the solid and transparent nature of the current administration,” a marked departure from the uncertainty that characterised former President Robert Mugabe’s era, when he first sought to invest in the country nearly a decade ago.

“We are looking to have various investments in various sectors, some of which are in cement, some of it in power generation, and some of it in pipeline to bring petroleum products,” Dangote told reporters. “You know we are in the business of producing oil — we have the largest refinery in the world, a single lane in Nigeria — and we want to bring it to Walbrooks Bay and then pipe it down there.”

Pressed on the size of his investment, Dangote said:

“It’s in the hundreds of millions of dollars, maybe even up to US$1 billion, but we will tell you the amount as we go along. But really, it will be over a billion because of the pipeline.”

Dangote praised the Mnangagwa administration for creating a more predictable and transparent business climate, adding pointedly that “a lot has changed” since the Mugabe era.

“There are quite a lot of changes between that time when we came and now. The government is solid. There is a lot of transparency and when you look at what His Excellency has actually done in terms of turning the economy around, that really gave us confidence that this is the right time for us to come and invest. It’s like when you pass an exam — people have to give you a good mark. His Excellency has passed that exam. That’s why we are here — to make sure we give him a very big mark and come and invest.”

If concluded, the planned venture, expected to cost between US$800m and US$1 bn, would establish a fully integrated industrial complex, comprising a cement plant, limestone quarry, coal mine, and captive power station.

The facility would directly support Zimbabwe’s fast-growing construction, infrastructure, and energy sectors, creating thousands of jobs and stimulating value-chain linkages across the economy.

Analysts say the project could have far-reaching spillover effects across mining, logistics, and manufacturing, while boosting Zimbabwe’s energy security and import-substitution drive.

Dangote’s re-engagement signals renewed regional investor confidence in Zimbabwe’s economic reforms, particularly following the establishment of the Zimbabwe Investment and Development Agency (ZIDA) and new fiscal incentives for strategic investors.

For Mnangagwa, Dangote’s entry would represent a powerful vote of confidence in his administration’s reform trajectory, potentially serving as a flagship example of African-led industrial investment.

Government insiders told Business Times that discussions focused on the fiscal framework, mining concessions, work permits for technical experts, and security of investment, underscoring the seriousness of the engagement.

Dangote first explored investment opportunities in Zimbabwe in 2015 and 2018, but his plans stalled amid shifting regulations, bureaucratic red tape, and inconsistent policy enforcement under the Mugabe government.

This time, industry observers believe the timing is different. Policy stability, energy-sector reforms, and regional trade integration under the African Continental Free Trade Area (AfCFTA) have combined to create a more conducive environment for large-scale industrial ventures.