Africa’s richest man moves closer to multi-billion-dollar East African industrial expansion as government fast-tracks investment talks

Africa’s richest man has moved a step closer to expanding his industrial footprint in East Africa after the Tanzanian government formally launched technical negotiations on proposed investments spanning fertiliser production, energy and transport infrastructure.

• Formal negotiations have begun on Africa’s richest man’s proposed investments in East Africa.
• The discussions cover fertiliser production, energy and transport infrastructure.
• The move strengthens Tanzania’s bid to become a regional manufacturing hub while intensifying competition with Kenya.
• The outcome could shape billions of dollars in industrial investment across East Africa.

President Samia Suluhu Hassan directed government ministries and agencies to begin immediate discussions with Aliko Dangote’s team following a meeting in Dar es Salaam, marking the first formal step towards transforming the proposals into bankable investment projects.

The decision signals Tanzania’s determination to secure one of the continent’s biggest private-sector investment programmes at a time when East African countries are increasingly competing to attract large-scale manufacturing projects capable of creating jobs, reducing imports and strengthening regional trade.

It also comes as Tanzania and Kenya continue competing to host Dangote’s proposed East African refinery, one of the region’s most anticipated industrial projects.

“We have identified areas that can deliver significant value for Tanzania, and we are ready to work together to develop them for mutual benefit,” Dangote said after the meeting.

He said Tanzania possesses strong potential to build industries that process local resources into higher-value products instead of exporting raw materials, a strategy that has underpinned the growth of his businesses across cement, fertiliser, petrochemicals and refining.

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Why Tanzania matters

The discussions focus on three sectors that sit at the centre of Tanzania’s industrial ambitions, fertiliser production, energy and transport infrastructure.

For Tanzania, securing a fertiliser investment would address one of East Africa’s biggest agricultural constraints.

Farmers across the region remain heavily dependent on imported fertiliser, leaving food production vulnerable to global supply disruptions, rising freight costs and volatile international prices.

Local manufacturing could reduce import dependence, lower production costs, improve food security and position Tanzania as a supplier of fertiliser across the East African Community.

Dangote Group already operates Africa’s largest granulated urea fertiliser complex in Nigeria, producing about three million metric tonnes annually for domestic and export markets, giving it extensive experience in developing and operating large-scale fertiliser facilities.

Energy could prove even more important to the proposed investments.

Tanzania holds an estimated 57 trillion cubic feet of proven natural gas reserves, among the largest in East Africa, offering one of the key ingredients required for fertiliser manufacturing. Natural gas serves as the principal feedstock for urea production, making reliable gas supply a critical factor in determining where global fertiliser producers invest.

The country’s southern Mtwara region combines natural gas resources, access to the Port of Mtwara and available industrial land, creating conditions suited for energy-intensive manufacturing.

Dangote is already familiar with the investment environment.

His three-million-tonne-per-year cement plant in Mtwara remains one of Tanzania’s largest industrial investments and has supplied both the domestic market and neighbouring countries for several years, providing the group with operational experience and established relationships with regulators.

East Africa’s investment race

The latest talks also underline the growing competition between Tanzania and Kenya to attract one of Africa’s most influential industrial investors.

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Kenyan President William Ruto has repeatedly expressed interest in hosting Dangote’s proposed East African refinery, with Mombasa emerging as a preferred location because of its deep-water port, existing petroleum infrastructure and larger domestic fuel market.

Those discussions prompted concern in Tanzania after earlier proposals linked the refinery to the Port of Tanga, leading President Samia to seek direct engagement with Dangote to ensure Tanzania remained under consideration.

Following the meeting in Dar es Salaam, Dangote reaffirmed that the refinery could still be located in Tanzania if the right commercial conditions are created.

“It doesn’t matter where the location is, and Tanzania, we have offered Tanzania to also be a part owner of this refinery,” he said.

Beyond the refinery, however, the latest discussions suggest Tanzania is pursuing a broader industrial partnership covering fertiliser production, energy infrastructure and transport projects, potentially making the relationship far more significant than a single investment.

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What happens next

Technical teams from Dangote Group are expected to begin detailed discussions with Tanzanian officials on land allocation, gas supply, infrastructure access, regulatory approvals and commercial frameworks needed to support the proposed investments.

The negotiations will determine whether Tanzania can convert political commitment into bankable projects capable of attracting billions of dollars in private capital.

For President Samia, securing the investments would advance her government’s ambition to industrialise the economy, add value to Tanzania’s natural resources and strengthen the country’s position as a manufacturing and logistics hub serving East and Central Africa.

For Africa’s richest man, the talks represent another step in exporting the industrial model he built in Nigeria, using large-scale investments in manufacturing, energy and infrastructure to serve regional markets, into one of the continent’s fastest-growing economic regions.