Africa’s electricity crisis could trigger a major shift in the investment strategy of the Dangote Group, with billionaire industrialist Aliko Dangote revealing plans to commit more than $10 billion to the power sector over the next three to four years.
Dangote said the proposed investment is aimed at expanding electricity generation and supporting industrialisation, while warning that inadequate power supply remains one of the biggest obstacles to economic growth and job creation across Africa.
The Dangote Group President disclosed the plan during an interview with Al Jazeera, where he discussed the continent’s investment environment, industrial development, electricity supply and the need for greater local production.
According to Dangote, the group is considering redirecting funds from some businesses into electricity generation and other power-related investments.
He specifically mentioned steel among businesses that could be reconsidered as the conglomerate determines where capital should be deployed. We are going to invest in power. There are one or two businesses that we might cancel, like steel, and we will put the money in power. We want to invest over $10bn alone in power, Dangote said.
He said the coming three to four years could bring significant changes to Africa’s economic landscape if the continent succeeds in addressing its power challenges.
The proposed investment would represent one of the most significant private-sector commitments to the African power sector by a Nigerian industrial group.
Dangote linked electricity directly to industrialisation, job creation and economic expansion.
He argued that African countries would struggle to achieve sustained economic growth without reliable electricity, stressing that industries cannot operate efficiently when power supply remains inadequate.
“Power is key; we will never create growth without power,” he said, adding that electricity should be regarded as a fundamental driver of economic development.
The businessman also argued that governments that successfully address electricity challenges could see significant economic and social benefits.
Dangote expressed concern over the number of Africans who still lack access to electricity.
He said more than 600 million people across Africa remain without electricity and argued that the continent could not afford to leave such a large proportion of its population without reliable access to power.
“We Africans should not really allow over 600 million of our people to remain in darkness,” he said.
The issue of electricity access remains closely linked to Africa’s broader development challenges, including manufacturing, digital services, education, healthcare and employment.
Dangote identified inconsistent government policies as another major challenge facing investors in Africa.
According to him, businesses have historically faced situations in which government policies changed frequently, making long-term investment decisions more difficult.
He said inadequate electricity supply had compounded the problem.
“The problem really is, it takes two to tango, Dangote said, pointing to policy uncertainty and insufficient electricity as two factors that have affected investment.
He nevertheless maintained that investors willing to commit to Africa could find substantial opportunities on the continent.
The industrialist argued that Africa must increase domestic production if it wants to create enough jobs for its growing population.
He said the continent cannot sustainably depend on imported products while expecting industrial development and employment opportunities to increase.
“If there’s no industrialisation, how do you create jobs? You can’t,” Dangote said.
He warned that Africa could eventually face financial difficulties if it continues to spend heavily on importing goods that could potentially be manufactured locally.
One day we will not have money to import what we are consuming,” he said.
Dangote also urged African investors and businesses to place greater confidence in the continent’s economic potential.
He argued that Africa would need stronger local investment if it is to develop industries capable of meeting domestic demand and competing internationally.
The billionaire said his own investment strategy increasingly focuses on expanding participation in businesses, spreading wealth and strengthening corporate governance.
“We want to make sure it’s about spreading the wealth. It’s about getting more people in the business. It’s also about corporate governance, he said.
During the interview, Dangote was also asked about criticism that the expansion of his businesses across multiple sectors could create monopolistic conditions.
He rejected the suggestion that such criticism would prevent him from pursuing his investment plans.
Using football superstar Lionel Messi as an analogy, Dangote said business leaders should remain focused on their objectives rather than being distracted by criticism.
He maintained that his businesses had not been granted exclusive rights by the government to operate in the sectors where they compete.
There’s nothing that the government gave us and say, ‘this is only for Dangote’,” he said.
According to Dangote, government policies establish the rules within sectors, while businesses and investors decide whether to participate.
Dangote further compared business competition to a 100-metre race.
He argued that companies and investors that choose not to participate should not blame those who enter a market and succeed.
“If there’s a 100-metre race, some people were on the bench while I’m on the track, and I agreed to run that race, and I won that race alone, are you going to blame me or are you going to blame people who just sat on the bench?” he asked.
He maintained that investors who believe in Africa and are prepared to commit capital can also participate in the continent’s economic opportunities.
The businessman acknowledged that criticism of his companies would continue but said it would not change his long-term objectives.
He described industrial development in Africa as a responsibility that requires sustained commitment and investment.
Dangote said his group would continue pursuing its goals despite opposition.
The distraction will continue. But we have what you call a very thick skin, he said.
He added that his group had set specific targets and would continue working towards them.
Beyond electricity and industrial production, Dangote called for African countries to process more of their raw materials locally instead of exporting them in largely unprocessed forms.
He argued that local processing would allow African countries to capture more value from commodities such as cocoa and create additional industrial and employment opportunities.
According to him, foreign investors should increasingly participate in manufacturing and processing within Africa rather than simply extracting raw materials for processing elsewhere.
He suggested that governments could eventually introduce stronger policies encouraging local value addition once the benefits of domestic processing become more evident.
Dangote’s proposed $10 billion-plus power investment comes at a time when electricity supply remains a major development challenge across many African economies.
Reliable electricity is critical to factories, businesses, telecommunications, transport infrastructure and other productive sectors.
For Nigeria, where businesses and households have historically relied heavily on alternative power sources because of unreliable grid supply, major private-sector investment in electricity generation could have implications for industrial operations if the planned projects materialise.
However, details of the proposed $10 billion investment—including specific projects, generation capacity, locations, financing structure and implementation timetable—have not yet been publicly outlined in the remarks reported.
For now, Dangote’s announcement signals a potentially significant expansion of his group’s interests in the power sector and reinforces his argument that electricity remains central to Africa’s industrial future.
