Africa’s richest man, Aliko Dangote, has announced plans to raise his conglomerate’s investment target across the continent from $50 billion to about $70 billion under its Vision 2030 programme.
Dangote, President and Chief Executive of Dangote Industries Limited, also disclosed plans for a 10,000-megawatt electricity generation intervention across Africa, potentially including Nigeria, to address power shortages and support industrial development.
He made the disclosure while addressing creative industry stakeholders from Northern Nigeria, including content creators, journalists, bloggers, entertainers and Kannywood stars.
“We initially planned to invest $50 billion. We are now looking at increasing that to about $70 billion in Africa,” he said.
Group’s Power Capacity to Hit 5,000MW by 2030
Dangote said the group’s existing electricity generation capacity of almost 1,500 megawatts could rise to between 4,500 and 5,000 megawatts by the completion of Vision 2030.
“Across the group, we currently have almost 1,500 megawatts. By the time we complete Vision 2030, that could rise to between 4,500 and 5,000 megawatts,” he said.
He explained that the capacity would serve the group’s operations, while the proposed 10,000-megawatt programme would be a separate intervention in power generation across the continent.
“That is captive power—electricity for our own operations. Separately, part of the vision is to intervene in power generation with 10,000 megawatts across Africa, potentially including Nigeria,” he added.
The industrialist said inadequate electricity supply remained a major obstacle to business growth, particularly for small and medium-sized enterprises (SMEs), warning that businesses relying on petrol and diesel generators would find it difficult to remain profitable.
Solar Systems Won’t Solve Nigeria’s Power Problem, Says Dangote
Dangote argued that individual investments in alternative power sources, such as solar systems, would not address the country’s wider electricity challenges, particularly for businesses without the resources to provide their own power.
“Installing solar power for yourself does not mean the wider problem has been solved. Other people may not have that option,” he said.
“A vibrant economy is driven by small and medium-sized enterprises. Large companies such as ours help sustain those businesses, but SMEs are essential to economic activity. When you generate electricity using diesel or petrol, it becomes very difficult to make money.”
The businessman said Nigeria had significant entrepreneurial potential but needed the right policies and business environment to translate its economic strength into growth and job creation.
“Government’s principal responsibility is to create an enabling environment through good policies. With the right policies, businesses can invest and create jobs,” he said.
Dangote Pushes for Local Processing of Raw Materials
Dangote also identified agriculture and solid minerals as sectors with considerable investment opportunities, particularly in Northern Nigeria.
He urged the country to prioritise local processing of raw materials instead of exporting them and importing finished products at higher costs.
“It is not only about us; it is about Nigeria and the African continent,” he said.
“We should not simply export raw materials and then buy back the processed products at many times the price. That is the pattern we want to change. Without production, we will continue to face economic difficulties. We must build a productive economy.”
On the group’s business expansion, Dangote attributed its growth to focus, financial discipline and the reinvestment of earnings.
He said the transition from trading to manufacturing was based on producing goods the company already understood, with existing customers, distribution networks and market knowledge providing a foundation for expansion.
“The logical next step was backward integration: producing the things we were already importing,” he said.
He advised entrepreneurs to exercise caution in managing their finances, warning against spending profits before they were realised.
“Give it your best effort, but when you do the numbers and they are not adding up, you must be willing to leave,” he said.
Despite the challenges confronting businesses, Dangote said his group would sustain its investments and encouraged smaller enterprises to take advantage of opportunities created by major industrial projects.
“People like us will continue investing. People like you can build businesses around those investments—as suppliers, producers and service providers,” he said.
