Dangote plans to shift over $10 billion from steel to electricity

Aliko Dangote is considering abandoning his steel project to redirect over $10 billion towards electricity in Africa over the next three to four years. The Nigerian businessman aims to address the continent’s energy deficit, where more than 600 million people still lack access to electricity.

In an interview published on Monday, September 21, by Al Jazeera, the president of Dangote Group explained that his conglomerate might drop one or two planned activities, including steel, to focus more capital on energy. He estimates that the effort for the electricity sector alone will exceed $10 billion.

The billionaire views electricity as a prerequisite for industrialization and economic growth. He believes that Africa cannot sustainably increase its production and industrial activity without addressing the lack of access to reliable energy.

Dangote Group is already involved in cement, fertilizers, sugar, and oil refining. The proposed shift mentioned on Monday would therefore involve capital intended for new activities, including the steel project that the industrialist says he may abandon in favor of electricity.

In the same interview, Aliko Dangote also confirmed his intention to double the capacity of his refinery and to open up more of his companies’ capital to investors. The group is pursuing several expansion projects alongside this new energy program.

No details have yet been provided regarding the targeted countries, the power plants involved, or the total capacity that these investments would represent. The announcement made on September 21 currently sets a timeline of three to four years and a budget exceeding $10 billion.