African Tycoon Aliko Dangote Outlines $16bn Investment Push
By m rochan | December 13, 2013 11:01 PM EST
Dangote Group, the Nigerian industrial conglomerate controlled by Africa's wealthiest man, Aliko Dangote, said it proposes to invest up to $16bn (£9.8bn, €11.6bn) over the next four years to expand its footprint across the African continent.
The investments would help the Lagos-based company grow by almost a third in 2014, said Dangote, who is worth $22.1bn, according to the Bloomberg Billionaires Index.
A part of the funds would be directed to build a natural gas-fired power plant that would provide more electricity to Nigeria, Africa's most populous nation, which suffers a huge power deficit.
"We are investing $4.7bn to finish our projects in cement in about 18 countries, including Nigeria," Dangote, the company's president, told Bloomberg.
"We are also spending about $2.3bn on agriculture, which is sugar and rice."
"We are going to do a backward integration for rice by growing the crop as well as distributing it. We think Nigeria can be self sufficient in rice in the next three to four years," Dangote said.
"The only new investment we are looking at is upstream - to look for gas to secure our future businesses. We want to step in and make gas available, and this will translate into more stable power in the country," Dangote added.
"We are very, very optimistic for 2014 - we are expecting average growth of 30% groupwide."
In September, the tycoon, who made his fortune selling cement, flour and sugar, signed a $3.3bn deal with banks to finance the construction of a $9bn oil refinery, petrochemical and fertiliser plant on Nigeria's Atlantic coast.
The project, the continent's largest, is expected to be operational in 2016.
Dangote Sugar, which is eyeing exports to Liberia, Senegal and Mauritania in 2014 year, could increase sugar cane production and almost double refining capacity to 2.75 million tonnes by 2017, chief executive Abdullahi Sule said in August.
Dangote Cement, Africa's biggest manufacturer of the building material, said in April it would double annual output to 55 million metric tonnes by 2015, on the back of new production in Cameroon, South Africa and Zambia.
Nigeria is Africa's biggest oil producer, but imports most of its fuel as it lacks refining capacity.
Meanwhile, a supply of 4,000 megawatts of electricity in Nigeria provides power to only 40 million Nigerians, leaving the remaining 120 million in darkness.
To report problems or to leave feedback about this article, e-mail:
To contact the editor, e-mail:
Most Popular Slideshows
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
- 2014 MLB World Series Game 3: Kansas City Royals 3, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Tesco Facing Crisis After Chairman Quits Citing Accounting Scandal In The Retail Giant
- Australian Federal Court Fines Reebok $350,000 & Orders Refunds For Shoe Endorsed By Miranda Kerr That Claims Unproven Health Benefits
- Perth Call Centre Staff Bad In English And Not Philippine And Indian Counterparts, Telstra Boss Says
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Verizon Motorola Droid Turbo Leaked Live Images Surfaces, Scheduled To Get Unveiled On Oct 28
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation
- U.S. Targets Buyers of ISIS Oil, Threatens Sanctions
- ISIS Syria Airstrike Bombing Has Killed 550 People, Civilians Included
- Russia Blocking OSCE Monitoring Of Its Border With Ukraine
- Russia Slams US 'Double Standards' In The Fight Against ISIS