Tanzania Woos Dangote for Multi-Billion Dollar Fertilizer and Power Mega-Projects

photo of Aliko Dangote

Tanzania is aggressively courting multi-billion dollar investment commitments from Nigeria’s Dangote Group for a massive urea fertilizer complex, a 2,000-megawatt power plant, and regional transport infrastructure.

The expansion plans were disclosed in a statement following an official delegation visit led by Tanzania Planning Minister Prof. Kitila A. Mkumbo to the Dangote Refinery facility in Lagos, Nigeria.

The diplomatic pitch builds directly on high-level negotiations between Tanzanian President Samia Suluhu Hassan and industrialist Aliko Dangote in Dar es Salaam to expand the conglomerate’s East African footprint.

Dangote Group currently operates an $800 million cement plant in Mtwara—the largest in Tanzania—with a three-million-tonne annual production capacity, anchoring its existing manufacturing footprint in the country.

Tanzania seeks to leverage Dangote’s expertise from his $2.5 billion Lagos plant—which produces 3 million metric tonnes of urea annually—to curb its own $379 million annual fertilizer import dependency.

“Africa now needs economic liberation, and that can only come through industrialisation,” stated Prof. Mkumbo during the Lagos facility tour, advocating for deeper cross-border trade under the African Continental Free Trade Area.

The mega-project basket encompasses a Special Economic Zone, new port infrastructure, and a vital transport corridor connecting Mtwara to Mbamba Bay to boost regional industrial capacity and energy security.

The high-stakes push comes weeks after Dangote selected neighboring Kenya for a separate $15-17 billion oil refinery, driving Tanzania to forcefully secure mega-investments in chemical manufacturing and power generation instead.

Picture of ThinkBusiness Africa

ThinkBusiness Africa

ThinkBusiness Africa

Your daily dose of contexts, commentary, and insights on business and economic developments that matter to you.