Online Reporter
Debra Matabvu
Senior Reporter
ZIMBABWE and the Dangote Group yesterday signed a global cooperation agreement covering key sectors such as energy, cement, fertiliser and infrastructure, a deal expected to run into billions of dollars once finalised.
The agreement marks a major step in strengthening economic ties between Zimbabwe and the Nigerian conglomerate, paving the way for large-scale investments aimed at boosting industrial growth and infrastructure development.
The agreement signed by Nigerian billionaire Mr Aliko Dangote and Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube will also see the construction of an oil refinery and sub-regional fuel pipeline.
The project, operated by Dangote Petroleum Refinery, will store and supply gasoline and diesel from Nigeria’s refinery to Namibia and other Southern African countries such as Botswana, Zambia and Zimbabwe.
In Zimbabwe the line will begin in Bulawayo and run through Gweru all the way to Harare.
Zimbabwe is also set to benefit from fertiliser production by the Dangote Group, a move that will see the country playing a key role in food security in the Sadc region.
In addition, the Dangote Group will also set up a cement manufacturing plant as well as a power generation plant.
Speaking at State House in Harare yesterday after meeting President Mnangagwa, Mr Dangote, who owns the Dangote Group, said the investment could run up to a billion United States dollars.
“It is a broader investment, really. It is in the hundreds of millions of dollars, maybe even up to a billion. But really, it will be over a billion because of the pipeline.”
Bard Santner Markets Inc, the financial advisory firm behind the visit, said Zimbabwe offers immense opportunities for investors.
In an interview, Bard Santner Markets Inc chief executive officer Mr Senziwani Sikhosana said the visit and planned investment by the Dangote Group were a national project which reflects on the country’s economic growth and development.
“It has been all hands on deck,” he said. “I think it is a country issue; everyone played a part, so it is a national project. That is how we should treat it.”
Mr Sikhosana said the various sectors that the Dangote Group are planning on investing in have massive potential.
He also added that his firm will continue scouting for foreign firms to invest in Zimbabwe.
“It is one of the skills that we have honed in the last three years, where we have said, look, let us actually become a financial institution that creates a framework for Foreign Direct Investment (FDI),” he said.
“So we are talking to investors in China, we are talking to investors in Germany, in the United States, to see if they can come and invest in the country. We, however, need to learn from this investment so that we create a strong framework for FDI, which also cuts bureaucracy.”
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