Zimbabwe: Dangote Returns to Zimbabwe After a Decade, Says He Sees Transparency Now

Africa's richest man, Aliko Dangote, has announced plans to invest over US$1 billion in Zimbabwe, saying he is confident in the country's renewed transparency and improved business climate, a sharp contrast to his first experience in 2015 when proposed deals collapsed amid bureaucracy and corruption.

During his 2015 visit, the Dangote Group founder and CEO met then-President Robert Mugabe and expressed interest in developing the Sengwa coal fields and constructing a 2,800MW coal-fired power plant. However, the projects failed to take off after frustrations over red tape and alleged demands for kickbacks from officials.

At the time, investors were not allowed to charge for electricity in foreign currency, and Dangote's proposal hinged on cost-reflective tariffs in U.S. dollars. The situation has since changed, with the government now permitting independent power producers to set tariffs and repatriate profits.

Following a meeting with President Emmerson Mnangagwa on Wednesday, Dangote announced that his conglomerate would roll out new projects in cement production, power generation, and a fuel pipeline.

The government views the planned investment as part of its broader effort to industrialise the economy, add value to local resources and create employment.

Dangote Industries Limited, one of Africa's largest conglomerates, operates across multiple sectors, including cement, sugar, oil refining, and fertilizer production. Its expansion into southern Africa could position Zimbabwe as a strategic link in a regional oil and fertilizer supply network connected through Namibia's Walvis Bay.

Asked why he decided to return after nearly a decade, Dangote said: "There is a lot of change between that time when we came and right now, it's solid. There is a lot of transparency. When you look at what His Excellency President Emmerson Mnangagwa has done in terms of turning the economy around, that is what gave us the confidence to say, 'This is the right time to come and invest.' It's like someone has passed an exam, people have to give him a good mark."

He confirmed that an agreement had been signed between Zimbabwe and the Dangote Group covering several sectors:

"Some of our investments will be in cement manufacturing, power generation, and the supply of petroleum products. We are also in the business of producing petroleum; we have one of the largest refineries in the world," he said.

Dangote added that while the investment package is broad, further details on specific figures and timelines would be shared as implementation progresses.

Read the original article on New Zimbabwe.

Zimbabwe: Dangote Returns to Zimbabwe After a Decade, Says He Sees Transparency Now - Pledges U.S.$1 Billion Investment