Nigerian businessman, Mr Aliko Dangote, has finalised plans to invest as much as $1 billion in Zimbabwe. This would be used to build cement and power plants as well as a fuel pipeline in the country.
The industrialist disclosed this during a meeting with the President of Zimbabwe, Mr Emmerson Mnangagwa, in Harare on Wednesday.
Mr Dangote had previously expressed interest in investing in Zimbabwe in 2015 but the deals stalled.
The Nigerian, who operates cement companies in 10 countries, planned to build a $400 million cement plant with processing capacity of 1.5 million tons a year. The deal, along with others proposed at the time, failed to materialize after talks with then-President Robert Mugabe.
Now, with the green light from the late president’s predecessor, Mr Dangote is adding Zimbabwe to his list of investment destinations, which span several countries across the continent from Ethiopia to Zambia.
Speaking to reporters on Wednesday, Mr Dangote lauded the Zimbabwe leader for turning “the economy around,” adding, “That really gave us the confidence that this is the right time for us to come and invest.”
Mr Dangote has diversified interests in cement, sugar, fertiliser, oil and gas, and other sectors. He has a net worth of $29.8 billion, according to the latest Bloomberg Billionaires Index.
According to reports, details around mining concessions, tax incentives, and investment guarantees, we’re discussed between the tycoon and the Zimbabwean leader.
The deal, which has been in the works for several months, picked up pace during the Afreximbank annual meetings held in Abuja in June.
In June, both sides managed to resolve key sticking points and outline the next steps toward implementation.
Harare-based Bard Santner Markets Incorporated facilitated the negotiations, led by CEO Senziwani Sikhosana and investment facilitator Josephine Mahachi.
On the government side, presidential investment adviser, Mr Paul Tungwarara was credited with steering the process, ensuring that all policy and regulatory approvals stay on track.
Dangote Cement Plc is Africa’s largest cement producer and has production capacity of over 50 million tonnes annually across multiple countries.