Latest news with #AlikoDangote
Business Insider
16 hours ago
- Business
- Business Insider
Nigerian billionaire, Dangote, sets ambitious goal with $2.5 billion fertilizer plant
Africa could become self-sufficient in fertilizer production within the next 40 months, according to Nigerian billionaire Aliko Dangote. Aliko Dangote projects Africa's self-sufficiency in fertilizer production within 40 months. Dangote fertilizer plant's planned expansion aims to boost production capacity and reduce reliance on imports. Enhancing local fertilizer production could address intra-African supply gaps and improve food security. Nigerian billionaire Aliko Dangote has unveiled plans to expand the $2.5 billion Dangote fertilizer Plant as part of a broader strategy to accelerate industrial transformation across the continent. The expansion, which will significantly boost production capacity, is aimed at reducing Africa's heavy reliance on imported fertilizer and improving self-sufficiency in agricultural inputs. "In the next 40 months, Africa will not import fertilizer from anywhere. We have a very aggressive trajectory right now. We want to put Dangote to be the highest producer of urea, bigger and higher than Qatar - give me 40 months," Dangote said at the annual Afreximbank meeting in Abuja as per Reuters Dangote's impact in Africa's fertilizer industry Africa currently imports over 6 million metric tons of fertilizer annually, a costly dependence that hampers agricultural productivity and exposes farmers to global supply shocks. According to a trade report by Afreximbank, the value of Africa's fertilizer exports in 2021 reached $8.9 billion, more than double the continent's imports of $3.7 billion—a surplus driven largely by North African producers. Morocco and Egypt alone accounted for $6.23 billion in fertilizer exports, representing over 70% of Africa's total and highlighting the region's growing significance in global supply chains. Fifteen African countries were net exporters of fertilizer that year, emphasizing the continent's potential to play a greater role in intra-African trade. However, key markets such as Ethiopia, Côte d'Ivoire, Zambia, Kenya, and the Democratic Republic of Congo remained heavily reliant on imports. As at today, Dangote's plant, already one of the largest in the world, has the capacity to produce up to 3 million metric tons of urea per year. According to Dangote, roughly 37% of the company's urea output is shipped to the United States, making the U.S. a key market. Beyond the U.S., Dangote also exports urea to other key markets such as Brazil, which has historically relied on Russian fertilizer supplies, as well as India and Mexico.
Business Insider
16 hours ago
- Business
- Business Insider
Dangote plans to list Africa's largest oil refinery in 2026 to quell monopoly fears
Dangote's decision to move forward with the listings of the oil and fertilizer refinery reflects the conglomerate's broader strategy to attract new investors and unlock greater value for shareholders. Aliko Dangote plans to list his Nigerian oil refinery on the stock market by the end of 2026. The Group also plans to list its urea fertilizer plant, producing 2.8 million tons annually, by the end of this year. The $20 billion Dangote Refinery, inaugurated in 2024, is Africa's largest with a processing capacity of 650,000 barrels daily. Aliko Dangote, Africa's richest man, has announced plans to list his massive Nigerian oil refinery on the stock market by the end of 2026, aiming to expand its investor base and ease concerns about monopoly power. Speaking at the African Export-Import Bank's annual general meeting in Abuja, Dangote also revealed that the Dangote Group will proceed with the stock market listing of its urea fertilizer plant, capable of producing 2.8 million tons annually, before the end of this year. Back in July, Dangote announced plans to list both the fertilizer and petrochemical divisions of the Dangote Refinery in the first quarter of 2025. The decision to move forward with the listings reflects the conglomerate's broader strategy to attract new investors and unlock greater value for shareholders. He also revealed plans for a dual listing of the refinery on both the London and Lagos stock exchanges. The $20 billion refinery, began operations in 2024 and is the largest on the African continent, with a capacity to process 650,000 barrels of crude oil per day. Ranked by Bloomberg as having a higher capacity than the ten largest refineries in Europe, the refinery currently produces aviation fuel, diesel, gasoline, and naphtha. Public listing to ease monopoly concerns Nigeria's downstream regulator and independent fuel marketers have clashed with Dangote, raising concerns about a potential monopoly in the local fuel market, similar to dominance seen in his other subsidiaries. But Dangote believes public listing will silence critics. 'It's important to list the refinery so that people will not be calling us a monopoly,' he said. 'They will now say we have shares, so let everybody have a part of it.' Earlier this year, Aliko Dangote projected that his conglomerate is on track to generate $30 billion in total revenue next year, despite growing concerns among global businesses about the potential impact of U.S. President Donald Trump's trade tariffs.
Reuters
18 hours ago
- Business
- Reuters
Nigeria's Dangote aims to end Africa's fertiliser imports
LAGOS, June 27 (Reuters) - Africa will be self-sufficient in fertiliser within 40 months, Nigerian billionaire Aliko Dangote said on Friday, on the basis of a planned expansion of his $2.5 billion plant on the outskirts of Lagos. Africa currently imports over 6 million metric tons of fertiliser annually as it struggles to produce enough food in often challenging growing conditions. The benefits of increasing domestic production would include reduced foreign exchange expenditure, which has been a major economic burden in Nigeria because of the weakness of the local currency. "In the next 40 months, Africa will not import fertiliser from anywhere. We have a very aggressive trajectory right now. We want to put Dangote to be the highest producer of urea, bigger and higher than Qatar - give me 40 months," Dangote said at the annual Afreximbank meeting in Abuja. Dangote runs Africa's largest granulated urea complex, which has annual capacity of 3 million tons, 37% of which it exports to the United States. It will need to double current output to achieve his ambition. Dangote has said he is not worried about the impact of Trump tariffs. Analysts say the market outlook for fertiliser is bullish, but there are also challenges and the kind of expansion Dangote seeks requires infrastructure to be built. "Any new fertiliser plant or expansion project faces cost overrun risks to the producer," Seth Goldstein, senior equity analyst at Morningstar Research, said. Mikolah Judson, an analyst at global risk consultancy, Control Risk, cited the need for "transport infrastructure and port capacity," saying "bottlenecks routinely delay various import and export projects in Nigeria". Dangote has a track record for delivering big projects. He also owns the Dangote Petroleum Refinery, Africa's largest, although its launch was repeatedly delayed and it exceeded its initial budget. He has said he intends to list the 650,000 barrels-per-day refinery next year and on Friday he also confirmed plans to list his fertiliser plant on the local stock exchange this year.
Bloomberg
18 hours ago
- Business
- Bloomberg
Dangote Plans to List Africa's Biggest Oil Refinery by Next Year
By Updated on Save Aliko Dangote, Africa's richest person, plans a stock listing for his Nigerian crude oil refinery by the end of next year to widen the company's investor base. The billionaire also plans this year to list the group's urea plant, which has a capacity to produce 2.8 million tons of the crop nutrient per annum, Dangote told the African Export-Import Bank's annual general meeting in Nigeria's capital, Abuja, on Friday.
Business Insider
7 days ago
- Business
- Business Insider
Aliko Dangote eyes Namibia for the next big investment move amid pan-African expansion
Aliko Dangote, billionaire and one of the most prominent African investors, is considering Namibia as a potential destination for his group's extensive investment portfolio. Billionaire Aliko Dangote considers Namibia for expanding his investment portfolio. His investment approach emphasizes Africa-wide economic self-reliance and development. Namibia is implementing strategies in green hydrogen and private sector collaborations. Fresh off the completion of what is now the world's largest oil refinery, Dangote hinted at his plans to expand into Namibia during a high-level meeting with President Netumbo Nandi-Ndaitwah in Windhoek this week. The visit marks another step in the Dangote Group 's ongoing expansion into energy and industrial markets across over a dozen African countries, including South Africa, Ethiopia, Zambia, and Tanzania. ' Africa is Africa. It's not about Nigeria alone. If we sit back, there is no entrepreneur; whether from Japan, the U.S., or elsewhere, who can come and build our continent for us. ' The billionaire said. Why Namibia? Dangote's interest in the southern African nation aligns with its emerging green hydrogen strategy and energy ambitions, as well as its renewed focus on pan-African private sector partnerships. Most notably, he announced the completion of a 650,000-barrel-per-day oil refinery, now the largest in the world, alongside significant production capacities for polypropylene, fertilizer, LPG, and other industrial products. He stated, " We now have oil and gas. We've just finished building the largest refinery ever built, not just in Africa, but globally." 'We produce one million tonnes of polypropylene, carbon black feedstock, LPG, sulphate chips, and a fertilizer capacity of over three million tonnes; the second largest in the world." He added. The billionaire investor highlighted his $620 million investment in South Africa as part of a broader strategy to promote economic self-reliance and intra-African trade, stating,"It's not about Nigeria; it's about Africa. We must show that it can be done, and done by us." In response to his comments, President Nandi-Ndaitwah emphasized the need for African-owned investments to drive value addition and job creation. She said: " We are too few to be poor, considering the resources we have; both human and natural." "We don't want to be seen as a rich continent with poor people. African entrepreneurs like you give hope to the young ones that it is possible." She added. In a potential investor-wooing effort, she invited Dangote to consider Namibia as "a home away from home" and affirmed the country's readiness to support African-led investment projects with long-term local impact. 'When we meet successful African entrepreneurs like you, it is not just business; it is inspiration,' she said. 'Namibia is ready for this kind of partnership.' Nandi-Ndaitwah said.
