Nigerian billionaire industrialist and Africa’s richest person, Aliko Dangote, arrived in Harare on Wednesday, 12 November, marking a decade since his last visit to Zimbabwe.
As reported by newZWire, Dangote’s first attempt to invest in Zimbabwe in 2015 ended in frustration. His team faced red tape, a lack of guarantees on tariffs for power projects, and allegations that some officials attempted to solicit bribes.
During that visit, Dangote was interested in the Sengwa coal fields, which RioZim had offered for investment. The plan involved building a 2,800MW coal-fired power plant.
He entered negotiations through the Black Rhino Group, an infrastructure investment arm backed by US private equity giant Blackstone.
Dangote reportedly made it clear that he would invest in power projects only if the government allowed cost-reflective tariffs in foreign currency. At the time, the government, which controlled electricity tariffs, refused, causing the deal to collapse.
A decade later, Dangote returned to Harare and met President Emmerson Mnangagwa. He was asked what had changed since his previous visit and the abandoned investment plans. He said:
“There’s been quite a lot of change between when we came and now. The government is solid… When you look at what His Excellency has done in turning the economy around, that gave us the confidence that, look, this is the right time for us to come and invest.
“When you pass an exam, people have to come and give you a good mark. His Excellency has passed that exam, that’s why we’re here…”
Dangote is exploring investments in a petroleum pipeline, as well as opportunities in coal power and cement.
During his meeting with President Mnangagwa, his delegation discussed mine concessions, tax incentives, project permits, and the security of the proposed ventures.
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