Dangote, Zimbabwe sign $1b deal for 2,000km energy pipeline

Africa’s richest man Aliko Dangote, has reached a $1 billion investment agreement with Zimbabwe in a move that could reshape parts of Southern Africa’s energy and industrial network. The deal covers a new fertilizer plant and a 2,000-kilometer pipeline running from Namibia’s Walvis Bay port, through Botswana, to Bulawayo, Zimbabwe’s second-largest city. 

The agreement comes as Dangote announced plans to visit Zimbabwe to finalize plans for a large industrial complex spanning cement, coal and power. His team has held talks with the government for months, signaling his growing interest in the region.

Talks with the president

Dangote met President Emmerson Mnangagwa in Harare on Wednesday, where the two sides signed a Memorandum of Understanding. It marks one of Zimbabwe’s largest private-sector commitments in recent years and reflects the government’s effort to draw long-term investment. 

“The broader investment is in the hundreds of millions of dollars, maybe even more than a billion,” Dangote told reporters after the signing. “We will share more details as we go along, but the pipeline itself pushes the total above a billion.” 

A presidential spokesperson said the pipeline and related projects could lower fuel import costs and improve the country’s production base, which has been strained by high logistics expenses and intermittent power cuts.

Regional links and industrial plans

The deal opens the door to new developments across energy, fertilizer production, cement and infrastructure. Dangote is also studying plans for a fuel storage hub in Walvis Bay, which could give Southern African markets an alternative supply route to Europe and Asia. 

For Dangote Industries—whose operations span cement, sugar, refining and food products across 17 African markets—Zimbabwe offers a mix of raw materials and unmet demand. The country imports cement during peak construction periods, and its electricity grid remains fragile, creating space for independent power producers. 

Earlier this month, Dangote also signed a fertilizer agreement with Germany’s thyssenkrupp Uhde to expand Nigeria’s urea capacity and support food security across the region. 

Broader investment strategy

Bloomberg puts Dangote’s net worth at about $29.8 billion. He has been directing more capital into fertilizer, cement, fuel supply and power to lessen Africa’s reliance on imports. One of the group subsidiaries, Dangote Sugar recently outlined a $700 million plan to expand sugar production in Nigeria in an effort to raise local output and curb the country’s import bill.