Dangote Group Plans $10bn Power Investment as Africa’s Electricity Gap Persists
The Dangote Group is planning to commit more than $10 billion to Africa’s power sector over the next three to four years, potentially placing private investment at the centre of efforts to address the continent’s persistent electricity shortage.
Aliko Dangote, president of the group, said the company could redirect funds from businesses it decides not to pursue into electricity projects across Africa. The proposed investment would target a sector that continues to face major infrastructure and access challenges.
More than 600 million people across Africa lack reliable access to electricity, limiting the ability of households and businesses to operate consistently. Poor power supply also increases dependence on diesel and petrol generators, raising operating costs for companies and making it harder for small businesses to expand.
A large-scale private investment could therefore have effects beyond electricity generation. More dependable power can support manufacturing, agriculture, technology and other businesses, while new energy projects can create jobs during construction and operation.
Dangote also linked the power investment to broader plans to increase public participation in the group’s businesses. He said the company intends to list its various businesses on stock exchanges, potentially allowing members of the public to become shareholders while strengthening corporate governance.
The proposed power spending comes as governments and development institutions continue to seek private capital for Africa’s energy transition. Its eventual impact will depend on where the projects are developed, how much new capacity they add and whether the investment improves the reliability and affordability of electricity for households and businesses.
If implemented at the proposed scale, the plan could also provide a test of how far large African companies can contribute to closing the continent’s electricity gap alongside governments and development financiers.
