Dangote plans $10bn power investment to tackle Africa’s electricity crisis

Africa’s richest man, Aliko Dangote, has announced plans to invest more than $10bn in the power sector as part of efforts to address Africa’s electricity deficit and support industrial growth.

Dangote disclosed this in an interview with Al Jazeera, where he identified unreliable electricity supply and inconsistent government policies as major obstacles to investment and industrial development on the continent.

He said his conglomerate was considering redirecting funds from some planned businesses, including steel, into electricity generation and other power-related projects.

“In the next three to four years, there will be a major transformation in Africa, and that’s why we’re looking at power. We are going to invest in power,” Dangote said.

“We want to invest over $10bn alone in power.”

The businessman expressed concern over the number of Africans without access to electricity, saying more than 600 million people on the continent were still living without power.

“We Africans should not really allow over 600 million of our people to remain in darkness,” he said.

Dangote described electricity as a critical foundation for economic growth and industrialisation, arguing that Africa would struggle to create jobs and achieve sustainable development without reliable power.

“Power is key; we will never create growth without power. That’s why they say power is growth. When I say power, I mean electricity is growth,” he said.

He also said Africa needed to reduce its dependence on imported goods by expanding local manufacturing and processing.

According to him, the continent could eventually face difficulties financing its growing import bill if it failed to develop its productive capacity.

“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.

Dangote attributed some of the reluctance to invest in Africa to frequent changes in government policies and inadequate electricity supply.

“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 investment remained necessary to create jobs and drive industrialisation across the continent.

“For some of us that really mean business, we are here, and we know that yes, without our intervention, Africa will never be able to create jobs,” he said.

Dangote also defended his business expansion against accusations of monopoly, saying he would remain focused on his investment plans despite criticism.

He compared his approach to that of a footballer concentrating on the ball rather than spectators.

“If I’m Messi, for example, I’m kicking the ball, and I’m looking at the audience, do you think I won’t miss the ball? I will miss the ball,” he said.

Dangote argued that his businesses had not been granted exclusive rights by the government and that other investors had opportunities to participate in the sectors in which his companies operate.

“There’s nothing that the government gave us and say, ‘this is only for Dangote,’” he said.

He added that investors who chose not to participate in available opportunities should not blame businesses that took the initiative.

Using a 100-metre race as an analogy, Dangote said, “Some people were on the bench while I’m on the track, and I agreed to run that race, and I won that race alone, are you going to blame me or are you going to blame people who just sat on the bench?”

The industrialist said his broader investment strategy was also aimed at widening 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.

Dangote further called for more processing of Africa’s raw materials within the continent, saying local value addition would create more economic opportunities.

He argued that African countries should develop industries capable of processing commodities before they are exported, rather than continuing to ship raw materials abroad.

“Eventually they (foreigners) will stop taking our raw materials. They must produce on our own continent,” he said.

Dangote said he remained committed to his industrialisation plans despite criticism, describing the development of Africa’s productive capacity as a responsibility he was prepared to pursue at considerable personal cost.

“We have a target, and we’re getting to our target,” he said.