Black Affairs, Africa and Development
Dangote seeks improved investment profile for Africa
Raises investment in Zambia to $800m
THE President and Chief Executive of Dangote Group, Alhaji Aliko Dangote has urged developed countries to promote investments in Africa rather than providing aids for the continent, arguing that through investment in the real sector the region can achieve real growth and development.
Dangote, who was speaking at a recent event in Lagos, added that African businessmen should increase the tempo of their investments across the continent to spur growth and development in Africa.
Africa, he insisted, will be better developed through investments by Africans.
He explained that most people do not seem to know much about Africa, but have only a notion of the continent that is based on history or hearsay.
He enjoined the Western nations not to “give any more aid to Africa” but to partner with businesses there and invest.
According to him, “investors will make more money and it’s better for everyone, and the continent will experience real growth and development”
Dangote, who has investments in about 14 African countries, acknowledged that business risks exist in Africa but cannot pose much impediment to investments
He said: “Before, there was the risk that governments might nationalise assets but now we have investment agreements in the country that says if it does get nationalized, they’ll have to pay us”.
Dangote argued that few people know much about Africa and instead rely on historical information or hearsay for its facts. “I am not saying it is as good as elsewhere but investment in the continent comes with almost the highest ROI in the world.
“In Zambia for instance, it used to be that Zambians had to hold 51 per cent of any business operating in the nation. Today, the law has changed.”
Meanwhile, Dangote Cement is set to open another $400 million cement plant in Zambia in 2014, bringing its total investment in the country to $800 million.
According to sources from the group “the opening of the Dangote Ndola plant, which is situated in Masaiti, will make Dangote the biggest cement producer in the country producing 3000 tonnes per day.
“The local cement production scenario will never be the same again with the coming of Dangote, which has now entered the Zambian market. Plans to open another 1.5 million tonne year capacity plant in the capital city after the completion of the Ndola plant in 2014 have reached an advanced stage.”