EXCERPT: Dangote Group plans to invest more than $10 billion in power, saying Africa cannot afford to leave 600 million people without electricity.
The Dangote Group plans to invest more than $10 billion in the power sector as part of efforts to address Africa’s electricity deficit.
Dangote said the investment reflects its concern over the number of Africans still without reliable access to electricity, with more than 600 million people across the continent estimated to remain without power. “We want to invest over $10 billion in power.”
He said access to electricity is critical to Africa’s development and should not remain a major barrier to economic growth.
“It is something that we Africans should not really allow. Over 600 million of our people to remain in darkness.”
The planned investment comes as the group continues to develop major industrial projects that require significant infrastructure, including power, roads and port facilities.
Dangote explained that said it had faced major infrastructure challenges while developing its facilities, including delays over land and difficulties linked to the condition of the terrain.
It said one of its projects was delayed for three and a half years after the land acquired for the development was blocked by the then governor of the state.
“First of all, we had human challenges where we bought a, you know, a, freezer zone where we were supposed to build a port and also build a pre-choice zone for other users, not only us. And it was blocked by the then governor of a state, you know, for three and a half years.”
He explained that the delay meant it continued paying interest on funds borrowed from banks even though the money could not be used for the project. “And we ended up paying interest on money that we are not using because it was put in a score account for us to start using.”
After abandoning the project, Dangote said it acquired another piece of land in Lagos for $100 million but faced further difficulties before it could begin development. “We finished, we came down to here in Lagos and, you know, we bought another land for $100 million. But that same land, we couldn’t really enter into the land for almost a year and a half.”
Dangote said more than 70 per cent of the land turned out to be marshy, requiring extensive work to make it suitable for development. “Over 70% of our land, only in front of it, it’s okay. Once you go, it’s a marshy land where we have to do what you call debouching.”
He said the land preparation process took eight months, while climate-related concerns also forced it to raise the land by 1.5 metres. “We have to now put in three biggest bridges in the world and pump 65 million tonnes of sand to be able to raise the land by one and a half metres.”
Dangote said it also had to construct a special road capable of carrying equipment weighing up to 3,000 tonnes, as existing roads could not support such loads. “We are supposed to build a road which could take 3,000 tonnes of one single item because our roads will not take that. They will sink.”
It also built a port to receive heavy equipment for the project.
Against that background, Dangote said power is one of the areas where it plans to make a major investment, with more than $10 billion earmarked for the sector.
He said the investment forms part of its broader plans for Africa and expressed the expectation that major economic transformation could take place within the next three to four years. “We want to invest over $10 billion in power. It is something that we Africans should not really allow. Over 600 million of our people to remain in darkness.”
Dangote also linked reliable electricity to political accountability, saying leaders would face less pressure to campaign if they delivered basic infrastructure such as power. “When you deliver power, you don’t need to go for a campaign.”
Erizia Rubyjeana
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