Dangote’s industrial empire is Africa’s shield against global shocks, says Afreximbank chief

When global crises disrupt energy markets, Africa often feels the pain first. However, this time – the far-reaching impact of the Iran war – the continent can absorb the shock because the Nigerianindustrial group led by Aliko Dangote has already built sufficient capacity, according to Afreximbank President George Elombi.

Elombi says that the Dangote Group’s investments, particularly in Nigeria’s refining and fertiliser industries, have become critical pillars of Africa’s economic resilience, underscoring the need for the continent to accelerate industrialisation rather than rely on imports.

“Oil prices are going up, but Africa didn’t lack in its refined petroleum products,” Elombi tells The Africa Report on the sidelines of a mid-year media briefing in Abuja. “For all the criticism that was levelled at the Dangote Group, that’s where we are. Is it something we should be very proud of? Certainly, we should.”

His remarks come amid ongoing geopolitical tensions in the Middle East, which continue to reshape global supply chains and expose the vulnerability of countries dependent on imported fuel, fertiliser and other strategic commodities.

For Elombi, the lesson is that Africa’s future security depends on building large-scale industrial capacity at home. “It’s not just the refined petroleum products; it’s also fertilisers,” he said. “The Dangote Group is exporting most of this fertiliser to Europe.”

Boosting intra-African trade

Instead of exporting those products beyond the continent, Elombi said Afreximbank wants more of that capacity directed towards African markets to deepen regional commerce under the African Continental Free Trade Area (AfCFTA).

The bank is backing that ambition with capital. Elombi revealed that Afreximbank committed $2.5bn towards the planned expansion of the 650,000-barrel-per-day (bpd) Dangote Petroleum Refinery after Dangote sought roughly $4bn in financing to increase capacity.

“It has to be done, not for [Dangote] … it has to be done in our own interest,” Elombi said. “Success breeds success.”

The refinery, already Africa’s largest, is expected to expand to 1.4 million bpd, potentially transforming the continent’s energy landscape and reducing reliance on imported refined fuels.

Elombi believes Nigeria’s success is encouraging other African governments to pursue similar investments. A proposed 700,000bpd refinery in Lamu, Kenya, would anchor fuel supplies across East Africa, serving Uganda, South Sudan and Congo. Afreximbank is also supporting discussions on a joint refinery involving Kenya, Uganda and Tanzania.

Beyond refining, Dangote’s continental expansion continues to gather pace. The group is developing a $2bn infrastructure programme in The Gambiacentred on a 250MW solar power project and modern fuel storage facilities.

It is also implementing a $1bn cement expansion programme across seven African countries in partnership with China’s Sinoma International Engineering, targeting a production capacity of 80 million tonnes annually by 2030.

Supporting strategic storage facilities

Dangote’s fertiliser business is also expanding beyond Nigeria, with Ethiopia emerging as another strategic production hub to strengthen food security across Africa.

Dangote is demonstrating that [Nigeria] is the heartbeat of the continent

Elombi said Afreximbank is simultaneously financing complementary infrastructure that would make these industrial investments more resilient. The bank is also supporting strategic storage facilities in Namibia alongside pipeline infrastructure to improve energy security.

Elombi cited Ethiopia as an example that illustrated the value of domestic African capacity. “When we were meeting with Ethiopian Airlines, they confirmed that when the Gulf crisis hit, they bought most of their Jet A1 fuel from this place,” he said, referring to the Dangote refinery. “It would not have been possible without such investments.”

For Elombi, Nigeria’s significance extends beyond economics. “So what’s the message of Nigeria? It’s that it’s the heartbeat of the African continent, and Dangote is demonstrating that it is indeed the heartbeat of the continent. If you stop the energy, everything comes to an end. The heart stops beating. So the pulse is coming from here.” ( The Africa Report)