Aliko Dangote has disclosed plans to invest more than $10 billion in power, as he identified electricity as critical to Africa’s economic growth.
Dangote made the disclosure during an interview with Al Jazeera on Monday, where he said he expects a major transformation across Africa over the next three to four years.
The billionaire businessman said the investment could involve redirecting funds from businesses the Dangote Group may decide not to pursue, including steel.
Dangote said the group is considering cancelling one or two planned businesses and redirecting the funds into power.
“We want to invest over 10 billion dollars alone in power,” Dangote said.
“Actually, there is one or two businesses that we might cancel, like steel, and we will put in the money,” Dangote added.
He did not provide details on the specific power investments, countries or timeline for deploying the funds.
Dangote said Africa should not allow more than 600 million people to remain without electricity.
“It is something that we Africans should not really allow, over 600 million of our people to remain in darkness,” he said.
He linked access to electricity directly to economic growth, saying Africa cannot generate growth without adequate power.
“So power is key; we will never ever create growth without power. So that’s why they say power is growth. When I say power, I mean electricity is growth,” he said.
Dangote linked the investment to his expectation of a major transformation across Africa over the next three to four years.
He said the group’s broader direction was also focused on spreading wealth, bringing more people into business and strengthening corporate governance.
“I’m telling you, in the next 3-4 years, there will be a major transformation in Africa, and that’s why we’re looking at power, for example,” he said.
Dangote did not disclose details of how the more than $10 billion would be deployed.
The Dangote Group already generates up to 1,540MW of electricity for its manufacturing subsidiaries as it seeks to reduce reliance on Nigeria’s power grid.
The Dangote Refinery also operates with its own 435MW power plant.
Beyond Nigeria, the group is expanding its energy footprint across Africa. Nairametrics reported in September that Dangote plans to begin construction of a $17 billion refinery in Kenya, with work expected to start by the end of the month.
The latest plan to invest more than $10 billion in power would therefore add another major component to Dangote’s growing energy interests across the continent.
Dangote’s planned investment comes as Africa faces a major electricity access gap.
About 600 million people across the continent still lack access to electricity, while rising population, industrialisation and energy demand are increasing the need for new generation and other power infrastructure.
Nigeria is also trying to attract more private capital into the sector.
Recent power-sector reforms have opened greater room for state governments and private participants to develop electricity markets, while the Federal Government said in March that the reforms had attracted more than $2 billion in fresh investment.
