Matthew Martin and Chris Kay Dubai
AFRICA’S richest man, Aliko Dangote, says further deals with the Investment Corporation of Dubai (ICD) may run into billions of dollars after the Emirati holding firm invested $300 million (R3.4 billion) in his cement business last month.
“We have also agreed to invest in other ventures in oil and agriculture,” Dangote said yesterday. “They already have a seat on our board.
“This could run into billions of dollars. There are a lot of opportunities that we are looking at with ICD.”
ICD chief executive Mohammed Al Shaibani said the state investment arm was exploring opportunities to work with the Nigerian billionaire after taking an unspecified holding in Dangote Cement last month, its first major Africa investment. The company is diversifying its investments, which include Emirates airline and Emaar Properties.
Dangote, whose cement and commodities businesses built him a $23.1bn fortune, according to Bloomberg, partnered with the private equity firms Blackstone Group and Carlyle Group in August for African investments. He said he planned to spend about $3bn to boost production of sugar and rice at his companies.
Dangote’s cement business, the biggest producer in Africa, has the capacity to produce 29 million tons in Nigeria and plans to expand in 13 other countries on the continent.
The billionaire is bidding for gas assets in Nigeria, Africa’s largest economy, to help stem continuing power disruptions to his cement plants in the country.
He is also building a $9bn oil refinery and petrochemical complex in south-west Nigeria that is scheduled to be completed in 2016.
While Nigeria is Africa’s top oil producer, it relies on fuel imports to meet more than 70 percent of its needs. Four state refineries with a combined capacity of 445 000 barrels a day are operating at a fraction of that because of poor maintenance and aging equipment.
“We are looking forward to doing more with Mr Dangote, and we have some things that we are exploring at the moment,” Al Shaibani said. “Having the right partner, especially in Africa, is the key thing.”
Dangote’s businesses offered “huge growth potential and we saw this as the right moment to come in”, he said. – Bloomberg