Industrialization in Sub-Saharan Africa

Tanzania is also constructing the large-scale Julius Nyerere Hydropower Station, with a total installed capacity of 2,115 MW and an annual electricity generation capacity of up to 6.3 billion kWh; Dongfang Electric Corporation is responsible for both construction and supply of all equipment for the project [37]. Commercial operation of the hydropower station is scheduled to begin in June 2025. In addition, Tanzania is building several smaller photovoltaic and natural gas power plants. Recognizing that electricity supply will become a major bottleneck as industrialization advances, the Tanzanian government has initiated a nuclear energy program—though still in its early stages, with actual construction not expected before the 2030s. Nigeria is prioritizing photovoltaic and natural gas power generation. It has already signed agreements with Chinese enterprises for three projects: a 3 GW natural gas power plant, a 4 GW integrated wind-solar-hydro project, and other hydropower initiatives—totaling 8 GW of installed capacity, equivalent to 2.4 times Nigeria’s current national electricity supply [38]. Among these, the Akwa Ibom Combined-Cycle Gas Power Plant has a total installed capacity of 3,000 MW and employs highly efficient gas-steam combined-cycle technology. Core generating equipment includes 12 Siemens SGT5-2000E gas turbines, 12 waste-heat boilers supplied by XiZi JieNeng (Xizi Clean Energy), and 6 Siemens SST-600 steam turbines [39]. Upon completion, the plant is projected to generate 15–20 billion kWh annually. Like East African countries, Nigeria also has plans to develop nuclear energy. Other West African nations—including Ghana—have already signed nuclear power plant contracts. Currently, five countries—Russia, France, China, the United States, and South Korea—possess nuclear reactor export capabilities, resulting in intense competition that benefits African nations through more favorable financing and cost terms. Overall, within approximately ten years, per capita annual electricity consumption in both West and East Africa is expected to reach over 500 kWh, with some countries surpassing 1,000 kWh—comparable to China’s level in the 1990s and India’s in 2010. 2. Petroleum Refining Infrastructure Gasoline is a critical energy source, accounting for roughly 30% of global primary energy consumption. Prior to the 2020s, although many sub-Saharan African countries were oil producers, their petroleum refining capacity was virtually negligible, forcing them to import large quantities of refined gasoline and thereby severely depleting foreign exchange reserves. In 2024, Dangote Group’s petroleum refinery commenced operations at the Lekki Free Trade Zone in Nigeria. The project was largely constructed by Chinese companies, whose firms also supplied core equipment; however, design work was jointly undertaken by Dangote Group and an Indian company. The refinery’s designed capacity is 650,000 barrels of crude oil per day, with annual production of 850,000 tons of polypropylene and 500,000 tons of polyethylene resin, representing a total investment exceeding USD 19 billion. As the world’s largest single-site refinery, its commissioning ended Nigeria’s long-standing dependence on imported refined petroleum products and fundamentally reshaped Africa’s energy landscape. [40] Dangote now plans to expand the refinery’s capacity to 1.4 million barrels per day and increase annual polypropylene output from 1 million to 1.5 million tons [41]. Simultaneously, Dangote intends to build another 650,000-barrel-per-day refinery in East Africa, targeting the entire regional market; the location—either Kenya or Tanzania—is still under consideration [42]. Once all these projects are completed, total crude oil processing capacity will reach 2.05 million barrels per day—equivalent to approximately 100 million tons annually—matching China’s refining capacity in 1990.

The Ambition of Africa’s Richest Man

In early March 2026, Africa’s richest man, Aliko Dangote, unveiled a new business expansion plan—entering the steel manufacturing sector while simultaneously advancing into power generation and port development. In an interview with The New York Times, he explicitly stated, “We must industrialize Africa.” For him, petroleum refining is merely the starting point; steel production represents the next strategic priority. This business magnate is seeking to extend his empire—from cement and energy—into foundational industrial raw materials, aiming to build an African version of the Tata Group. 01 The Trailblazing Billionaire Aliko Dangote was born in 1957 in Kano, Nigeria, into a wealthy merchant family; his grandfather traded in peanuts, and Dangote absorbed commercial acumen from an early age. After graduating from Al-Azhar University in Egypt in 1977, he borrowed startup capital from an uncle and began trading in candies and daily necessities—gradually building his business empire. Dangote’s success is deeply intertwined with Nigeria’s industrialization journey. In the 1990s, he shifted from importing and repackaging cement to domestic production; after acquiring a state-owned cement plant in 2003, he steadily built a “cement kingdom” spanning 17 African countries. In 2025, his USD 23 billion Dangote Refinery achieved full-capacity operation, processing 650,000 barrels of crude oil per day and transforming Nigeria from a net importer into a net exporter of refined petroleum products. “No one dared do it—so we did,” Dangote often says to describe his business philosophy. He once owned luxury cars, mansions, and an active nightlife—but around two decades ago, he decided to focus exclusively on industrialization, selling off overseas properties and high-end vehicles. Today, he lives modestly in a simple house in Lagos and spends most of his working days inside construction site trailers. Taking India’s Tata Group as his model, he is determined to set Africa on an industrialization path. His latest move into steelmaking continues his core strategy: promoting localized production to reduce import dependency. Dangote maintains deep ties with Chinese enterprises. In September 2025, he signed strategic cooperation agreements with China National Building Material Group and China National Chemical Engineering Company, aiming to expand collaboration in cement, gypsum board, glass, and other sectors—and jointly tap African markets. According to media reports, his subsidiary Dangote Cement Plc has signed a USD 1 billion agreement with Chinese firms to construct new plants and expand existing capacity across seven African countries. Recently, Aliko Dangote led a delegation to Beijing for strategic talks and a vehicle delivery ceremony with the management of Beiqi Foton Motor Co., Ltd. 02 Chinese Capital Accelerates Steel Investment in Africa Africa’s steel industry stands at a pivotal turning point. According to data from the World Steel Association, Africa’s crude steel output reached 2 million tons in January 2026—a 5.8% year-on-year increase—making it one of the few regions globally experiencing growth. Yet Africa’s per capita steel consumption remains only about one-eighth of the global average. The mismatch between resources and industrial capacity is especially stark. Guinea’s Simandou iron ore mine is planned to produce 120 million tons annually of high-grade iron ore containing 65% iron. By the early 2030s, Africa’s annual iron ore output is projected to exceed 200 million tons. Yet continental steel production grows slowly—rising only from approximately 15 million tons in 2014 to just 26 million tons in 2024—with most output derived from scrap recycling rather than integrated smelting using locally mined iron ore.

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Dangote Group has engaged Engineers India Ltd. to oversee a $16 billion greenfield refinery and petrochemical plant in Kenya. The 700,000 barrels-per-day facility aims to enhance East African fuel production and reduce import reliance.

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