Dangote to build port, 2,000MW power plant in Tanzania

Africa’s richest man, Aliko Dangote, is set to expand his investments in Tanzania with plans to develop a port, a 2,000-megawatt coal-fired power plant and several other large-scale infrastructure projects in the East African country.

The plans were disclosed late Monday in a statement issued after Dangote held talks with Tanzanian President Samia Suluhu Hassan, outlining a series of investments aimed at supporting the country’s industrialisation drive.

The latest move shows Dangote’s growing infrastructure ambitions beyond Nigeria as he accelerates investments across Africa. In addition to expanding his footprint in Tanzania, the billionaire has already announced plans to replicate his Lagos-based refinery in Kenya, while pursuing other industrial projects in Ethiopia and across the continent.

What they are saying

According to the statement, Dangote’s proposed investments extend well beyond power generation and include projects designed to strengthen Tanzania’s industrial and logistics infrastructure.

The plans cover the construction of a new port and a 40-kilometre concrete access road to improve connectivity to the facility.

The Dangote Group also intends to develop a special economic and trade zone, construct a 2,000-megawatt coal-fired power plant, establish a urea fertiliser project and build transport infrastructure linking the Indian Ocean port city of Mtwara with Mbamba Bay on Lake Malawi in southern Tanzania.

• “We have identified areas that can deliver significant value for Tanzania, and we are ready to work together to develop them for our mutual benefit,” Dangote said after the meeting with President Hassan.

The statement added that both parties are expected to commence formal negotiations in the coming days to finalise the proposed investment agreements.

More insights

The Tanzania projects are part of Dangote’s broader strategy to expand his industrial footprint across Africa through investments in refining, fertiliser, manufacturing and critical infrastructure.

• In mid-May, Ugandan President Yoweri Museveni disclosed that he had met with Dangote to discuss plans for a proposed regional refinery project in East Africa, signalling growing momentum behind efforts to strengthen the region’s energy infrastructure.
• The billionaire also recently announced plans to replicate his refinery model in Lamu, Kenya, while increasing investment in a fertiliser complex in Ethiopia to more than $4 billion.

Collectively, the Dangote Group has said it plans to invest about $40 billion across Africa over the next five years as it expands operations in manufacturing, energy and industrial infrastructure.

What you should know

Dangote’s latest push into Tanzania comes as the company is simultaneously preparing a major expansion of its flagship refinery complex in Lagos.

• The refinery, currently capable of processing about 650,000 barrels of crude oil per day, is expected to almost double its capacity to around 1.4 million barrels per day following a planned expansion, positioning it among the world’s largest refining facilities.
• To support the project, the African Export-Import Bank (Afreximbank) has reportedly underwritten $2.5 billion as part of a broader $4 billion syndicated term loan.
• The Dangote Group has also continued investing in construction equipment and supporting infrastructure needed for the refinery’s expansion. Earlier this year, it signed a $400 million agreement with XCMG Construction Machinery to accelerate ongoing construction works.

Beyond increasing fuel production, the expansion is expected to significantly raise polypropylene manufacturing capacity from approximately 900,000 metric tonnes to about 2.4 million metric tonnes annually, strengthening the refinery’s role as a major supplier of industrial raw materials across Africa and reducing the continent’s dependence on imports.