Dangote plans to invest in Zim power, cement and coal mining
‘Ball is in the government’s court’
ZIMBABWE already counts South African mining magnate Mzi Khumalo, telecoms tycoon Strive Masiyiwa and companies, such as Impala Platinum and Pick n Pay, among its high net investors. They have stuck with the country even during bad times when others chose to stay away, discouraged by concerns over the operating and regulatory framework.
Now, the mineral rich southern African country is about to add Africa’s richest man, Aliko Dangote, to its list of investors. The Nigerian billionaire, worth an estimated $17 billion (about R228bn) in fortune, visited Zimbabwe this week and struck investment deals in mining, cement manufacturing and power generation.
Unlike other delegates scouting for investment opportunities in Zimbabwe, Dangote’s visit appeared purposeful. He seemed to have done research into the Zimbabwean economy and knew what he was getting into, sources who participated in the meetings told Business Report.
“He was fully informed and had done his homework, hence he did not waste his time on asking questions.
He came here to meet government officials and to put across the message that he was a serious investor,” the sources said.
Dangote separately met President Robert Mugabe and his deputy, Emmerson Mnangagwa, as well as mining, transport and local government ministers.
He also made time to meet business executives to get deeper appreciation of the operating framework from people on the ground.
“We have already decided on multimillion investments in Zimbabwe in three sectors which are power, cement and coal mining. As soon as we get permits, we will hit the ground running,” Dangote said.
He was particularly forthcoming about the cement manufacturing plant, telling journalists after meeting Mnangagwa that he was looking to set-up “an integrated cement plant here that will be bigger than all the plants that we have (and)… that can translate into a million-anda-half tons” per year.
Assurances
Zimbabwe has always been attractive to investors with big appetite for risk and Dangote falls into that bracket. Sources said he sought assurances from the leadership that his investments would be protected with no sudden shifts in policies once he had written the cheques.
For a country that is in urgent need of foreign direct investment with economic growth that has been cut from above 3 percent to 1.5 percent, Dangote’s visit could not come at a better time.
Economists say the government should review its policies and remove bureaucracy in investment approvals. Dangote said as much, highlighting that while he was ready to start his investments in Zimbabwe, the ball was in the government’s court to kick-start the construction of the cement plant.
“We will move in very fast (but) it all depends on the government,” he said.
Media reports suggest Mugabe’s cabinet has approved Dangote’s investments.
However, sceptics say they will only celebrate once they see the investments being actioned, pointing to the million dollar mega deals signed with Chinese and Russian investors in the past two years that have not yet taken off.