AFRICA’s richest man, Aliko Dangote, has signed a multi-investment deal with the Zimbabwean government worth over US$1 billion.
The investment will be spread across the country’s cement, fertilisers, infrastructure and energy sectors.
Dangote, who has a net worth of US$25 billion, flew into Zimbabwe yesterday morning seeking to invest in the country after failing to do so in 2015.
Back in 2015, Dangote met with the late former President, Robert Mugabe, intending to invest US$1 billion, but reneged.
Speculation was that the billionaire reneged after high-ranking government officials allegedly demanded “mediation fees” to facilitate the investment.
This time around, however, Dangote had better things to say about the current Zimbabwe administration led by Mugabe’s successor Emmerson Mnangagwa.
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The planned investment will be implemented through the billionaire’s Nigeria-based company, the Dangote Group, the largest diversified industrial conglomerate in West Africa.
The group’s core business revolves around large-scale manufacturing in sectors like cement (Dangote Cement is the largest producer in Africa), sugar, salt and, most recently, significant investments in the oil and gas sector, notably the massive Dangote Refinery and a fertiliser plant.
Dangote’s much talked about visit was facilitated by Bard Santner, an asset management firm.
Bard Santner CEO Senziwani Sikhosana was a prominent figure at State House yesterday where the deal was signed.
“Well, we have just actually signed an agreement between Zimbabwe and the Dangote Group to do various investments in various sectors, some of which, of course, are in a broader discipline like cement, power generation, with some of it in the pipeline and to bring petroleum products,” Dangote told journalists following the signing of the investment deal.
Finance, Economic Development and Investment Promotion minister Mthuli Ncube signed on behalf of the government.
“You know, we are in the business of producing oil and we have the largest refinery in the world, single train, in Nigeria and we’re to bring it to Walvis Bay (Namibia) and then pipe down here (southern Africa) as well,” Dangote said.
In July, Reuters reported that Dangote Petroleum Refinery had plans to build storage tanks in Namibia with a capacity of at least 1,6 million barrels of petrol and diesel, aiming to supply refined fuel to southern Africa.
“There are a couple of other investments that we are looking at,” Dangote said yesterday.
This interest includes Zimbabwe’s fertiliser industry.
“It’s a broader investment, really, in the hundreds of millions (United States dollars), maybe even up to a US$1 billion but, you know, we will tell you the amount as we go. But really, it will be over US$1 billion because of the pipeline,” Dangote said.
“There is quite a bit of change between that time when we came and now. Government is solid.
There is a lot of transparency and also when you look at what His Excellency (Mnangagwa) has done in turning the economy around, that really gave us the confidence to say look, this is really the right time for us.”
He said for him, it was like a person passed an examination and was given a good mark as a result.
“So, His Excellency has passed that exam. And that is why we are here to make sure that we give him a very big mark,” Dangote said.
The billionaire’s arrival comes at a time when the Zimbabwe government is actively looking for investment, as back in 2021, Treasury noted that the country had a capital requirement of US$40 billion.
Banker and entrepreneur Nigel Chanakira recently told our sister paper, The Standard, that Zimbabwe could place its economy on a much firmer long-term growth trajectory if it secures about US$50 billion in new actual investment over the next decade.