The Dangote Group has unveiled more details of its ‘Vision 2030’, targeting over $115 billion in group turnover and $35 billion in annual profit by 2030, anchored on nearly $50 billion in new investments across Africa.
This, it said, includes an $8 billion 13-metric-tons-per-annum (MTPA) Liquefied Natural Gas (LNG) plant, and a new East Africa refinery in Lamu, Kenya.
President and Group Chief Executive of Dangote Industries Limited, Alhaji Aliko Dangote, provided the latest details in the plan during the visit of Kenyan President, Dr. Williams Ruto and his wife, Rachel, to the Dangote Petroleum Refinery and Petrochemicals Complex at Ibeju-Lekki, Lagos, at the weekend, ahead of Wednesday’s groundbreaking of the facility in Lamu.
Ruto, who toured the 650,000 barrels per day refinery, the world’s largest single-train facility, described it as a masterpiece of science and engineering with art.
He revealed that five African presidents, out of eight invited, have confirmed their attendance to the Lamu refinery groundbreaking, which will be developed by Dangote in partnership with the Kenyan government.
The Vision 2030 roadmap comes as Dangote Group pushes ahead with its broader industrialisation drive across the continent. In Nigeria, the group already operates Africa’s largest cement producer, the 700,000 bpd refinery and targeting 1.4 million bpd, a 3 million tons per annum fertiliser plant which is the world’s second largest urea complex, petrochemicals, and a massive gas and power infrastructure in Lekki Free Trade Zone.
The group has launched the Dangote Refinery Initial Public Offer (IPO), which is expected to be the largest in Africa’s history and to crystallise value for the conglomerate.
Management said internal forecasts show revenues and cash flows from existing assets will fund equity for the $50 billion capex, while debt commitments have been secured from financiers including Africa Finance Corporation (AFC).
“All these are businesses that we are already operating or planned. The only one that we have not started at ground zero is the LNG. So the contribution of the LNG is only $8 billion. But then we don’t have mining. We don’t have the other businesses that we have. This is just to make sure that in the worst case, we will not be less than $115, 120 billion dollars by 2030.
“Because what we are trying to do is to say, so where will we be by 2030? Where are we going to be? So we’ll have a group that can have a profit of $35 billion on an annual basis, which we can now plan again another five years. So if you do this one, if you are going to list, it means that we can have a group worth over $350 billion. So that’s the plan and vision 2030,” he said.
He disclosed that Lamu will host a bigger power plant than Lekki, generating about 1,000 megawatts from petcoke, with 500MW to be sold to the Kenyan government.
“So here I will give you a sense of what we are going to have in Kenya. But Kenya will be a little bit bigger than what you are going to see today. And I’m happy that you brought our dear sister, Her Excellency, so that when the Lamu project is taking a lot of your time, she’ll forgive you,” Dangote added.
In a presentation, Group Chief Strategy Officer of Dangote Industries Limited, Mr. Aliyu Suleiman, said the Vision 2030 was driven by the conviction that only Africans will develop Africa, leveraging Dangote’s track record of building world-class businesses.
“The aim of the vision is to lead Africa’s industrialisation because we realise that nobody will develop Africa but us… All our companies will operate at the level of the best in the world,” Suleiman said.
Suleiman added that beyond refining, the group is eyeing port infrastructure, gas infrastructure, LNG, upstream, power and mining, and is confident the $50 billion can be financed from internal cash flow and committed debt.
In his remarks after the tour, Ruto said the stopover from the United Nations General Assembly (UNGA) was worth every minute and confirmed his government is fully behind the Lamu project.
“I was on my way from the UNGA but Dangote asked me to make a stopover and now I can say, without fear of any contradiction, that this visit was worth every minute of the time I have spent here,” Ruto said.
He recalled that Kenya initially sought fertiliser imports from Dangote but talks shifted at the Build Africa Summit in April to building a regional refinery.
