Nairametrics| Critics of Africa’s richest man, Aliko Dangote have accused him severally of practicing crony capitalism or taking advantage of loopholes in government to further his businesses. From questionable us of pioneer taxes to getting dollar allocations at discounted exchange rate, the list is quite compelling. They may have to continue seething for a very long time.
The billionaire businessmen has recently secured a coal mining license from the Tanzanian Government. According to reports from Reuters, the coal mining licence was awarded to the local unit of Dangote Cement “as part of plans to lower the company’s production costs and ease disruptions caused by energy shortages.”
It wasn’t always difficult for Dangote to get this license. All they had to do was shut down operations citing technical problems and high production costs. After all, he is Africa’s richest man and investing in the continent rather than elsewhere. Every African President want’s to see the world’s leading billionaires in their countries helping create jobs and contributing to the country’s GDP. After all we are in a Dangotean Era as a Professor once put it.
And so the President of the country John Magufuli, gave out marching orders to government officials, giving them a seven-day ultimatum to allocate a coal mining area to Dangote within the mineral-rich Ngaka coal fields, which are licensed to another company. Here is Reuters again;
The Ngaka coal basin in southern Tanzania, an area covering more than 840 square kilometres, is licensed to Tancoal Energy Ltd, a subsidiary of Intra Energy Corp, which is listed on the Australian Stock Exchange.
Intra Energy said it would work with authorities to hand over part of its licensed coal mining area to Dangote, but raised concern about what it called “special treatment” being given to the Nigerian cement maker by the Tanzanian government.
Dangote cement is Africa’s biggest cement producer with a production capacity of 43.6 million tonnes. The company is listed on the Nigerian Stock Exchange and closed at N161 on Friday. Year to date, the stock is down 7.47%