Dangote explores up to $15bn investment in Egypt, targets refining, petrochemicals

Aliko Dangote, president and chief executive of Dangote Industries Limited, is exploring investments of up to $15 billion in Egypt, with oil refining and petrochemicals expected to anchor the Nigerian conglomerate’s expansion into North Africa.

The proposed investment, which could range between $10 billion and $15 billion, is part of Dangote’s plan to expand industrial operations across the continent and achieve its Vision 2030 ambition. The scale and composition of the commitment are still under discussion with Egyptian authorities.

The latest engagement followed a visit to Dangote Industries’ Lagos headquarters on Sunday by Mohamed Farid Saleh, Egypt’s minister of investment and foreign trade, accompanied by senior government and industry officials. Dangote received the delegation, describing the meeting as an opportunity to advance African economic integration and strengthen industrial cooperation between the two countries.

Dangote had indicated last month that the initial investment in Egypt could reach about $10 billion, with the total potentially exceeding $15 billion depending on the outcome of discussions with the government.

He said refining and petrochemicals would likely form the foundation of the investment, with the ambition of positioning Egypt as a major exporter of refined petroleum products rather than relying largely on imports.

The proposed expansion comes as Egypt seeks to attract more investment from major African businesses and build long-term partnerships with regional conglomerates.

On October 15, Mohamed Awad, chief executive of Egypt’s General Authority for Investment and Free Zones, conveyed the government’s interest in a strategic partnership with Dangote Group at an event held at the historic headquarters of the Egyptian Exchange in Cairo.

Representing Farid, Awad said Egypt wanted to deepen investment ties with major African conglomerates and develop a long-term relationship with the Nigerian group.

A major Egyptian investment would extend Dangote’s industrial footprint beyond its established operations in cement, sugar, flour, fertiliser and petroleum refining, while giving the group a stronger presence in one of North Africa’s largest economies.

The proposed expansion also fits into Dangote’s wider Vision 2030 strategy, which targets annual group revenue of $100 billion by the end of the decade. The businessman has pledged to invest as much as $50 billion in industrial projects across Africa over the same period, financed through a combination of internally generated funds, equity and debt.

Beyond the potential Egyptian projects, the group’s investment pipeline includes a proposed 530-kilometre subsea gas pipeline, up to 10,000 megawatts of power generation capacity and a linear alkylbenzene plant with an annual capacity of 400,000 metric tonnes.

The group is also pursuing expanded urea fertiliser and polyethylene production, alongside a target of increasing Dangote Cement’s annual production capacity to 100 million tonnes.

The scale of these plans reflects the group’s ambition to expand across energy, manufacturing and infrastructure, although their delivery will depend on financing, project execution and market conditions.

Dangote’s links to Egypt also predate the proposed investment. He studied business at Al-Azhar University in Cairo before building his business empire through investments in cement, sugar and flour, followed by expansion into fertiliser and petroleum refining.

A substantial commitment in Egypt would mark one of the group’s largest cross-border investments and deepen commercial ties between Nigeria and Egypt, two of Africa’s biggest economies. It would also test the extent to which African industrial groups can expand across national borders and build production networks within the continent. (BusinessDay)