Africa’s richest man, Aliko Dangote, has disclosed plans by the Dangote Group to invest more than $10 billion in the power sector over the next few years to address electricity challenges and support industrialisation across Africa.
Dangote made the disclosure in an interview with Al Jazeera, where he identified inconsistent government policies and inadequate electricity supply as major challenges discouraging investment on the continent.
He said the group was considering redirecting funds from some planned businesses, including steel, into electricity generation and other power-related investments.
“We are going to invest in power. There are one or two businesses that we might cancel, like steel, and we will put the money in power. We want to invest over $10bn alone in power,” Dangote said.
He projected significant changes in Africa’s power sector over the next three to four years, stressing that reliable electricity was essential to economic growth.
Dangote also expressed concern that more than 600 million Africans still live without access to electricity, describing the situation as a major challenge that the continent must address.
According to him, Africa cannot achieve sustainable economic growth or create enough jobs without industrialisation and greater local production.
He argued that the continent must reduce its dependence on imported goods by developing its manufacturing capacity.
Policy Stability, Power Supply
Dangote said inconsistent government policies and inadequate electricity supply had continued to discourage investors from committing capital to African economies.
“The problem really is, it takes two to tango. I think in the past, there’s been a lot of flip-flops in government policies. Government policies were changing every day, and then, the lack of electricity is also there,” he said.
He maintained that private-sector intervention was necessary to complement government efforts, arguing that industrialisation remained critical to job creation.
Dangote warned that Africa could eventually face difficulties financing the importation of the goods it currently consumes.
“One day we will not have money to import what we are consuming. So how can we remain an import continent? It has to change,” he said.
He urged Africans to invest more in businesses and industries on the continent in order to expand economic opportunities and retain more value locally.
Dangote Rejects Monopoly Claims
Responding to allegations that his business activities were creating monopolies, Dangote said he would remain focused on his investment objectives rather than be distracted by criticism.
He compared his approach to that of football players, saying they must concentrate on the ball rather than the spectators.
Dangote argued that the government had not granted his businesses exclusive rights to operate in any sector, saying opportunities remained available to other investors.
“There’s nothing that the government gave us and say, ‘this is only for Dangote’,” he said.
Using a 100-metre race as an illustration, he said investors who chose not to participate should not blame those who entered and succeeded.
Dangote said criticism of his businesses would not stop his plans to invest in Africa.
He also said his investment philosophy was focused on spreading wealth, increasing participation in businesses and strengthening corporate governance.
“We want to make sure it’s about spreading the wealth. It’s about getting more people in the business. It’s also about corporate governance,” he said.
Calls for Local Processing
Dangote further called for more processing of Africa’s raw materials within the continent, saying local value addition would help retain economic benefits and accelerate industrial development.
He argued that African countries should increasingly process commodities such as cocoa locally instead of exporting raw materials and importing finished products.
According to him, demonstrating the economic benefits of local processing could eventually encourage governments to introduce policies that promote domestic value addition.
Dangote said he remained committed to his long-term industrialisation plans despite criticism and other challenges.
He described industrial development as a responsibility requiring determination and personal sacrifice, adding that Africa’s economic future depended on greater investment in production, infrastructure and local industries.