Business & Startups

Tanzania Sets Sights on Dangote’s Billions for 2,000MW Power Plant, Fertiliser Projects

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The Tanzanian Government is courting Dangote Group for major investments in power generation, fertiliser production and industrial infrastructure as the East African country intensifies efforts to accelerate economic growth.

The proposed partnership could see Dangote expand its footprint in Tanzania beyond cement into strategic sectors capable of strengthening the country's energy supply, agricultural productivity and industrial capacity.

Tanzanian President Samia Suluhu Hassan has welcomed Dangote Group's continued interest in the country and directed relevant government ministries and agencies to commence detailed technical discussions on the proposed investments.

Among the projects under consideration is a massive power-generation facility with a planned capacity of about 2,000 megawatts, which could significantly boost Tanzania's electricity-generation capacity if successfully implemented.

The proposed investment portfolio also includes a urea fertiliser plant, reflecting Dangote's growing interest in expanding its fertiliser operations across Africa and supporting agricultural production through increased access to locally manufactured inputs.

The discussions are also expected to cover major infrastructure projects designed to facilitate the movement of raw materials and finished products, including transport and port-related developments.

Tanzania's interest comes as Dangote Group continues to strengthen its industrial presence across Africa through investments spanning cement, fertiliser, energy, manufacturing and infrastructure.

Dangote already has an established presence in Tanzania through its cement operation in Mtwara, which represents a significant investment in the country's manufacturing sector.The Mtwara cement plant has an annual production capacity of about three million tonnes and serves the Tanzanian market while also supplying neighbouring countries.

The proposed expansion would therefore represent a major broadening of Dangote's Tanzanian operations, potentially transforming the company into a significant player in the country's energy and agricultural sectors.

The Tanzanian Government has appointed its Minister of Planning and Investment, Prof Kitila Mkumbo, to coordinate strategic discussions with Dangote Industries and oversee negotiations surrounding the proposed projects.

A Tanzanian delegation is also expected to travel to Nigeria as discussions advance, with the visit expected to help develop implementation frameworks for the proposed investments.The government said the planned partnership aligns with its broader strategy of attracting productive foreign investment, promoting industrialisation, encouraging technology transfer and creating sustainable employment opportunities.

For Dangote Group, expanding into Tanzania's energy and fertiliser sectors could provide another major platform for growth in East Africa while strengthening its wider continental investment strategy.

The proposed fertiliser project is particularly significant given Dangote's expanding ambitions in Africa's agricultural sector and its existing investment in large-scale urea production.

Dangote's broader fertiliser expansion plans include increasing production capacity in Nigeria while developing additional facilities in other African markets.

Tanzania's pursuit of Dangote also highlights the growing competition among African countries to attract large-scale industrial investors capable of delivering infrastructure, employment and domestic production capacity.

The proposed 2,000MW power project could become particularly important for Tanzania if implemented, as increased electricity generation would provide additional support for manufacturing and other energy-intensive industries.

The fertiliser investment could similarly strengthen the country's agricultural value chain by increasing domestic access to fertiliser and potentially reducing dependence on imported products.

Beyond individual projects, the proposed partnership could deepen economic ties between Tanzania and Nigeria and create opportunities for increased trade, investment and industrial cooperation between the two countries.

However, the projects remain at the discussion and negotiation stage and would still require detailed technical assessments, agreements and relevant regulatory approvals before implementation.

If successfully concluded, the investments could give Dangote Group a significantly larger footprint in East Africa while supporting Tanzania's ambitions to expand its energy, agricultural and industrial sectors.

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