Dangote Expands to Power with 20,000MW Africa Power Grid Plan

Africa’s wealthiest man, Aliko Dangote, has revealed a bold strategy to enter the power sector with a target of 20,000 megawatts (MW). He shared this vision during a high-level meeting at the International Finance Corporation (IFC) headquarters.

The industrialist held talks with the IFC Managing Director, Maktar Diop, to discuss the next phase of his conglomerate’s growth. Dangote explained that the move into power addresses the most critical barrier to continental industrialisation.

Currently, inadequate electricity remains the biggest constraint to competition in Africa. The planned 20,000MW capacity will support existing investments like his fertiliser plants and infrastructure projects.

The billionaire noted that the Dangote Group now possesses a very strong cash flow. This financial health allows the company to raise more money and take on more ambitious ventures.

“We are opening up mines of potash and phosphate in Congo Brazzaville. We are now going into power, 20,000 megawatts. We are building the biggest deep-sea port of 18 meters depth,” he stated.

Refinery Success and Dollar Dividend Plans

The 650,000 barrels per day Dangote Refinery has already stabilised its operations. This project reduced the unsustainable practice of exporting crude oil only to import refined petroleum products.

The group plans to list the refinery on the stock market. This will allow everyday Africans to own shares and participate in the wealth creation process.

To attract investors, the company intends to pay dividends in hard currency. This policy ensures that capital stays within the continent while protecting investor value against local currency fluctuations.

“When we list, we are going to ask Africans to do, and we want to derisk, also their own capital. So when we are paying a dividend, all our dividends will be in dollars,” Dangote added.

Furthermore, investors will have the choice to receive payments in Naira, Dollars, or South African Rand. The value, however, will be calculated and paid based on the US Dollar rate.

Breaking Barriers to Intra-African Trade

Despite his massive wealth, Dangote lamented the structural barriers that hinder trade. He identified visa restrictions and high logistics costs as major obstacles for African businesses.

He alleged that moving goods from Lagos to the Republic of Benin is often impossible. Trucks can stay at the border for up to two weeks without the right connections.

Transportation costs also remain a burden. He pointed out that shipping goods from Lagos to Accra is more expensive than shipping from Spain to Nigeria.

“When you look at Africa today, somebody like myself, I need 38 visas to move around. How do I now invest if I’m not able to move around? 38 visas doesn’t make sense,” he stated.

Meanwhile, the group is investing in Liquefied Natural Gas (LNG) and a new deep-sea port. These projects seek to boost value addition and reduce the continent’s heavy reliance on foreign imports.

Private Sector Leadership and Self-Reliance

The businessman believes that local investors must lead the way before foreigners arrive. He noted that his group typically owns a super-majority of its companies, often between 89% and 92%.

To grow at a larger scale, the company is now seeking more partnerships. Private sector leadership is essential to unlocking the potential of the African Continental Free Trade Area (AfCFTA).

Dangote also prioritised water infrastructure and agriculture. He argued that better irrigation systems could reduce poverty and address insecurity in vulnerable regions of the continent.

“If we keep waiting for foreign investors, foreign investors are very smart. They are not going to come. They will only come when they see our own commitment,” he stated.

His long-term goal, he says, is a self-reliant Africa driven by local industry and job creation.

By expanding into power and mining, the group may be hoping to create a fully integrated industrial ecosystem.

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