Dangote Plans 10,000MW Power Intervention, Raises Africa Investment Target To $70Bn
By Sunday Etuka
The President and Chief Executive of Dangote Industries Limited, Aliko Dangote, has announced plans to raise the group’s planned investment in Africa from $50 billion to about $70 billion under its Vision 2030 programme, with a major focus on electricity generation to support industrial growth.
Dangote spoke to creative industry stakeholders from Northern Nigeria, including content creators, journalists, bloggers, entertainers and Kannywood stars.
He said expanding production, creating jobs and ensuring reliable electricity were central to unlocking Nigeria’s economic potential.
The Dangote group, in a statement on Thursday, quoted him to have described inadequate power supply as a major threat to the survival of small and medium-sized enterprises, warning that businesses that rely on petrol and diesel generators would struggle to make profit.
According to him, the group is considering a 10,000 megawatt power programme across Africa, which may include Nigeria, in addition to expanding the generating capacity that serves its own operations.
“We initially planned to invest $50 billion. We are now looking at increasing that to about $70 billion in Africa,” he said.
Dangote said African businesses must take greater responsibility for investing in the continent and tackling the infrastructure gaps that discourage other investors.
He identified inconsistent government policies and unreliable electricity as significant barriers, adding that the group had largely solved the power problem within its operations by generating its own electricity.
“Across the group, we currently have almost 1,500 megawatts. By the time we complete Vision 2030, that could rise to between 4,500 and 5,000 megawatts,” he said.
He explained that this is captive power for the group’s own use, while the separate 10,000 megawatt plan would be an intervention in power generation across Africa, potentially including Nigeria.
Asked which economic decision would do most to improve the lives of ordinary Nigerians, Dangote put electricity at the centre of the country’s development needs.
He argued that households and companies installing their own alternative power systems would not by themselves solve the wider problem.
“Installing solar power for yourself does not mean the wider problem has been solved. Other people may not have that option,” he said. “A vibrant economy is driven by small and medium-sized enterprises. Large companies such as ours help sustain those businesses, but SMEs are essential to economic activity. When you generate electricity using diesel or petrol, it becomes very difficult to make money.”
Expressing confidence in Nigeria’s entrepreneurial strength, he said the country had yet to enjoy the full benefits of its large and dynamic economy.
Businesses, he said, have a duty to invest and create opportunities, while the government should focus on providing policies and conditions that allow enterprises to grow.
“Government’s principal responsibility is to create an enabling environment through good policies. With the right policies, businesses can invest and create jobs,” he said.
The industrialist named agriculture and solid minerals as areas with substantial potential, particularly in Northern Nigeria, but stressed that the country must stop exporting unprocessed resources.
He said investment in infrastructure such as ports could open markets for other producers and make it easier for businesses to develop and export their products.
“It is not only about us; it is about Nigeria and the African continent,” he said. “We should not simply export raw materials and then buy back the processed products at many times the price. That is the pattern we want to change. Without production, we will continue to face economic difficulties. We must build a productive economy.”
Reflecting on his career, Dangote credited the group’s growth to focus, financial discipline and steady reinvestment of earnings.
He said the shift from trading to manufacturing was built around products the group already understood, backed by existing customers, distribution networks and market knowledge.
“The logical next step was backward integration: producing the things we were already importing,” he said.
He also advised entrepreneurs not to spend anticipated profits and to recognise when a venture is no longer commercially viable.
“Give it your best effort, but when you do the numbers and they are not adding up, you must be willing to leave,” he said.
Despite the challenges facing businesses, Dangote said the group would keep investing and encouraged smaller enterprises to build opportunities around major industrial projects.
“People like us will continue investing. People like you can build businesses around those investments, as suppliers, producers and service providers,” he said.
