Dangote Unveils Major Infrastructure Investment Plan for Tanzania

Nigeria's Dangote Group plans to deepen its presence in Tanzania through a series of large infrastructure projects, including a new port, a 2,000-megawatt coal-fired power plant and transport links, as part of its wider investment drive in Africa.

The proposed projects were made public after Aliko Dangote met with Tanzanian President Samia Suluhu Hassan. The discussions focused on investments designed to support industrial development and improve transport and energy infrastructure in Tanzania. Formal negotiations on the proposed agreements are expected to begin in the coming days.

The planned investments come at a time when the Dangote Group is increasing its presence in several African countries. The company has continued to expand beyond its traditional businesses in cement and manufacturing by investing in refining, fertiliser production, transport and energy projects.

This strategy has seen the company announce industrial projects in countries such as Kenya, Ethiopia and Uganda. The Tanzania proposal fits into that wider plan to strengthen industrial capacity and infrastructure in different parts of the continent.

The company has also announced plans to invest about $40 billion in Africa over the next five years. Those investments cover manufacturing, energy, logistics and other sectors that support industrial production.

Projects focus on transport and energy

The proposed Tanzania investment includes the construction of a new port and a 40-kilometre concrete access road that will improve movement to and from the facility.

The Dangote Group also plans to establish a special economic and trade zone, build a 2,000-megawatt coal-fired power plant and develop a urea fertiliser project.

Another major part of the proposal is transport infrastructure linking the Indian Ocean city of Mtwara with Mbamba Bay on Lake Malawi in southern Tanzania. The planned connection is expected to improve movement between the two locations and support economic activity.

Dangote said the company had identified projects capable of creating value for Tanzania and expressed readiness to work with the country's government to develop them for mutual benefit.

Officials from both sides are expected to begin discussions soon to finalise agreements that will determine how the projects will move forward.

African investment plan continues

The Tanzania proposal follows several other investment announcements by the Dangote Group in East Africa.

In May, Ugandan President Yoweri Museveni disclosed that he held talks with Dangote on plans for a regional refinery project in East Africa.

The company has also announced plans to replicate its refinery model in Lamu, Kenya. In Ethiopia, it is increasing investment in a fertiliser complex to more than $4 billion.

While these regional projects move forward, the company is also expanding its flagship refinery in Lagos.

The refinery currently processes about 650,000 barrels of crude oil per day. Planned expansion works are expected to increase capacity to about 1.4 million barrels daily, making it one of the world's largest refining facilities.

To support the expansion, the African Export-Import Bank has underwritten $2.5 billion as part of a wider $4 billion syndicated term loan.

The Dangote Group has also invested in construction equipment for the refinery project. Earlier this year, it entered a $400 million agreement with XCMG Construction Machinery to support ongoing construction work.

The refinery expansion will also increase polypropylene production from about 900,000 metric tonnes to about 2.4 million metric tonnes each year. This is expected to improve the supply of industrial raw materials within Africa and reduce dependence on imports.

The proposed Tanzania projects now stand as another major step in the company's long-term plan to combine industrial production with transport and energy infrastructure in key African markets.