Aliko Dangote, Africa’s wealthiest entrepreneur and founder of the Dangote Group met with Zimbabwe President Emmerson D. Mnangagwa at the State House to discuss significant investment prospects in cement production, coal mining, and power generation. (ZanuPFOfficial/X)
Nigerian billionaire Aliko Dangote is looking to make inroads into Southern Africa’s energy sector with a proposal to build a pipeline from Walvis Bay, Namibia, to the second-largest city in Zimbabwe, Bulawayo.
Dangote and Zimbabwean President Emmerson Mnangagwa met in Harare on Wednesday, where they signed an agreement focused on energy, cement, fertiliser and infrastructure development.
Presidential spokesperson, George Charamba, said, “a key transnational matter for Zimbabwe is an oil refinery and sub-regional pipeline project,” which would start in Walvis Bay, move through Botswana and into Zimbabwe, and cover more than 2 200km.
Charamba said this project could change Zimbabwe’s production structure, with fuel costing less to import.
Dangote Petroleum Refinery is already planning to construct a large fuel storage facility in Walvis Bay, expected to hold 1.6 million barrels of petrol and diesel, thereby reducing Southern Africa’s reliance on fuel imports from Europe and Asia.
On arrival at State House, Mnangagwa gifted the world’s richest black man with a crocodile-skin briefcase to kick off talks on various investment opportunities worth over US$1 billion.
Dangote first came to Zimbabwe in 2015 to explore similar opportunities in energy, fertiliser, and cement, but disagreements arose with the government of then-president Robert Mugabe. At the time, Dangote’s team bemoaned red tape and lack of guarantees.
Asked what had changed this time, Dangote said Mnangagwa had created a stable environment.
“There’s been quite a lot of change between when we came and now. The government is solid, when you look at what his excellency has done in turning the economy around, that gave us the confidence that, look, this is the right time for us to come and invest,” he said.
“When you pass an exam, people have to come and give you a good mark. His Excellency has passed that exam, that’s why we’re here.”
Scouting for opportunities won’t be as hard.
“We will try to guide him (Dangote) and show him the potential in the country,” said Senziwani Sikhosana, the chief of Bard Santner, the asset management firm that facilitated the visit.
“He is looking at cement, a coal power plant as a start, and he’s also looking into fertiliser.”