Dangote shows Africa can do it

by SAVIOUS KWINIKA 
JOHANNESBURG, (CAJ News) – SOMETHING significant is happening in Africa’s economic story.

Nigerian billionaire Aliko Dangote’s decision to offer shares in his 700,000-barrel-per-day Dangote Petroleum Refinery and Petrochemicals to the public is more than a major capital-market transaction.

It is a powerful demonstration of what African entrepreneurs, investors and innovators can achieve when the right economic and political conditions exist.

The proposed public offer, expected to raise about ₦2.15 trillion (about US$1.6 billion), would give ordinary Nigerians and eligible investors an opportunity to own part of the refinery.

Built at a cost of about US$20 billion, the facility is the world’s largest single-train refinery and has helped Nigeria reduce its dependence on imported refined petroleum products.

For decades, Africa has exported crude oil, minerals and other raw materials, only to import finished products made from them.

This dependence has drained wealth from the continent, weakened local industries and left African economies vulnerable to international price shocks.

Dangote’s refinery offers a different model.

Instead of exporting crude oil and importing petrol and diesel, Nigeria now has the capacity to process more of its own crude on African soil, supply its domestic market and export refined petroleum products.

The benefits extend beyond fuel security.

Refining creates jobs, develops technical expertise, stimulates supporting industries and keeps more economic value within Africa.

The same principle applies to mining.

Africa possesses enormous mineral wealth, yet much of the continent’s resources continue to leave its shores in raw or minimally processed form.

African countries can create far greater wealth by investing in beneficiation, manufacturing and technologies that turn natural resources into higher-value products.

This is where African entrepreneurs such as Dangote become important.

His business interests span cement, fertiliser, petrochemicals, sugar, logistics, power and other sectors across the continent.

His achievements demonstrate that African capital can finance projects of global significance and that Africans do not have to depend entirely on foreign investors to build strategic industries.

But entrepreneurs cannot do this alone.

Governments have a critical responsibility to create an environment in which businesses can invest for the long term.

Political stability, reliable electricity and transport infrastructure, transparent regulations, enforceable contracts, access to finance, predictable taxation and respect for the rule of law are essential for industrial development.

African governments must therefore move beyond investment conferences, political promises and ceremonial meetings with wealthy investors.

Serious investors require confidence that policies will remain consistent and that their investments will be protected.

The Dangote refinery also demonstrates the importance of Africans owning African enterprises.

When citizens can buy shares in major companies, wealth creation becomes broader and ordinary people gain a stake in national economic progress.

Africa’s future cannot depend indefinitely on exporting raw materials while importing finished goods.

The continent needs African-owned industries, African scientific research, African innovation and African investment capable of solving African problems.

Dangote’s achievement is therefore bigger than one refinery or one businessman.

It is evidence that Africa can build, manufacture, innovate and compete globally.

What Africa needs now is more of it — and governments willing to create the conditions for African entrepreneurs to do it.

– CAJ News