Dangote to sink over $10bn into Africa's power sector, may drop steel

Aliko Dangote plans to invest more than $10 billion in Africa's power sector over the next few years, betting that reliable electricity is the base on which the continent's industrial growth will be built. Africa's richest man disclosed the plan in an interview with Al Jazeera.

He also said he may abandon other ventures, including steel, to free up capital for energy infrastructure. "We want to invest over $10 billion alone in power," Dangote said.

Power before everything else

The Dangote Group president was direct about his priority. "Power is growth," he said. Without energy, he argued, Africa cannot unlock its full potential.

His reasoning goes beyond business. More than 600 million people on the continent still live without electricity. The World Bank estimates that more than half of Africa's population lacks access to power. That deficit touches households, hospitals, schools and businesses. Children study by candlelight. Clinics struggle to run equipment. Companies cannot scale.

Dangote's plan is to channel billions into power infrastructure in the hope of lighting homes, energising schools and stabilising industries.

Steel may be dropped

To fund the push, Dangote said he may cancel some ventures such as steel. The move signals a reallocation of resources toward what he considers the continent's most urgent need.

He also tied electricity to politics. Leaders who deliver reliable power, he said, do not need to campaign extensively for re-election because their results speak for themselves. In his view, power supply could reshape governance by shifting attention from promises to visible delivery.

Three to four years

Dangote predicted a "major transformation in Africa" within three to four years, driven by improved access to electricity. His optimism rests on the idea that energy can unlock industrialisation, create jobs and cut poverty.

Reliable power would also attract foreign investment, strengthen manufacturing and boost competitiveness, he said.

Questions remain about implementation. Power projects require complex coordination with governments, regulators and communities. Corruption, policy delays and technical hurdles have derailed similar initiatives in the past. Dangote's record in building Africa's largest cement empire is his main argument that he can push through obstacles.

Fertiliser IPO still on the cards

Separately, Dangote has confirmed plans to take Dangote Fertiliser public in 2028, a move that would open another part of his industrial empire to Nigerian and international investors. He gave the timeline during an interview at the Qatar Economic Forum on Sunday, where he discussed the ownership structure of his businesses and plans to bring more investors into the Dangote Group.

For Nigerian businesses and consumers, the power pledge matters because the cost and unreliability of electricity remain a drag on output. If the capital lands and projects move, manufacturers who currently run on generators could see cheaper production over time. Until then, the gap between announcement and delivery is the part that will decide how much changes.