Will Africa become a new global center for industrial manufacturing in the future?

For mid- and low-end industries, Africa is certain to become the next manufacturing hub after South Asia. In fact, North African countries such as Egypt and Morocco have already emerged as regional industrial centers. Egypt’s apparel and chemical exports are growing rapidly, while Morocco’s automobile production has surpassed that of South Africa, reaching an annual output of one million vehicles—including nearly 500,000 passenger cars. On a per capita basis, this already matches China’s level in 2012. Of course, North Africa’s situation cannot represent Africa as a whole: its industrialization began earlier and its overall development level far exceeds that of Sub-Saharan Africa. Nevertheless, as Sub-Saharan African nations gradually end their civil wars and attain social stability, they now have the opportunity for peaceful development—and in this era of globalization, they are boarding the ‘last train’ of industrialization. For a comprehensive overview of industrialization in Sub-Saharan Africa, please refer to my article “Industrialization in Sub-Saharan Africa.” Here, I would like to introduce a towering African capital tycoon—through him, we can glimpse just how robust Africa’s industrial momentum truly is. This man is Aliko Dangote, Nigeria’s richest individual and Africa’s wealthiest Black person. Born into a Muslim merchant family in northern Nigeria, he built a vast industrial empire—the Dangote Group—starting from cement trading. Nigeria’s industrial base is weak, and essential industrial inputs are severely scarce; thus, private capital has had no choice but to shoulder the burden of industrialization. Though framed as a ‘task,’ it is equally a business opportunity: domestic supply shortages have created high profit margins in local markets. Dangote’s enterprise began with cement manufacturing, achieving annual production capacity of several tens of millions of tons across West Africa. He then invested in petroleum refining: his Lagos refinery processes 650,000 barrels per day—and plans are underway to expand capacity to 1.4 million barrels daily. Simultaneously, the Dangote Group has launched a $15-billion refinery project in Kenya (East Africa), designed to process 700,000 barrels per day. Upon completion of both projects, the Group’s total refining capacity will reach 2.1 million barrels per day. Recall that China’s annual refining output in 1990 was 100 million tons—equivalent to roughly 2 million barrels per day—comparable to Dangote Group’s post-expansion capacity. If we include other refineries across Sub-Saharan Africa, the region’s total refining capacity will approach China’s level around the year 2000. Beyond refining, Dangote’s fertilizer investments are equally ambitious: his current urea production capacity in Nigeria stands at 3 million tons annually, with expansion plans underway in Nigeria and Ethiopia targeting a combined output of 12 million tons per year—rapidly approaching China’s early-1990s level.

From $3,000 to $23.8 billion! The world’s richest Black person: Nigerian tycoon Aliko Dangote

In 1981, at age 24, Dangote founded a company bearing his surname. He steadily secured bulk import licenses for various commodities, expanding his business scope from initial products—cement, sugar, flour, and salt—into steel, textiles, aluminum products, transportation, and real estate. In the mid-to-late 1980s, a sharp global oil price decline severely damaged Nigeria’s economy, casting doubt on the prospects of Africa’s largest market. Yet Dangote remained calm and decisively pivoted toward manufacturing. He successively established textile mills, flour mills, sugar refineries, cement plants, and oil refineries—targeting precisely those sectors previously reliant on large-scale imports. These products—basic necessities for daily life—ensured steady cash flow even amid Nigeria’s economic turbulence, since consumers continued purchasing them regardless. Built upon staple commodities like cement and energy, the Dangote business empire possesses exceptional resilience against risk, enabling smooth financing and business expansion. Strategically, Dangote deeply understands that controlling upstream sources means controlling profits—achieving cost reduction and efficiency gains through integrated supply chains. His cement plant owns its own limestone reserves and uses its in-house transport company, cutting costs by 45%. His sugar refinery operates a 30,000-hectare sugarcane plantation, raising raw-material self-sufficiency by 30%. His refinery has signed long-term supply agreements with multiple international oil giants, ensuring stable production. Over time, through methodical, step-by-step growth, Dangote transformed his company into West Africa’s largest industrial conglomerate—with operations spanning numerous African countries. Starting with a borrowed $3,000, Dangote ultimately amassed a fortune of $23.8 billion, becoming the world’s wealthiest Black person. Since Forbes launched its “Africa’s Richest” list in 2008, he has consistently ranked #1. Because his core businesses—essential for economic development and population growth—he is expected to retain his position as Africa’s richest person for the foreseeable future. Some say his success stems from a combination of family background, innate talent, timing, and relentless hard work. Dangote himself believes that, beyond these factors, networking—especially cultivating strong relationships with government authorities—is critical to entrepreneurial success. Just as Hu Xueyan, the Qing Dynasty ‘red-cap merchant,’ first backed Wang Youling and later aligned with Zuo Zongtang, Dangote places great emphasis on forging personal ties with political leaders. He first met Olusegun Obasanjo—then a military officer—in the late 1970s, and the two became close friends. In 1999, Dangote financially supported Obasanjo’s presidential campaign. After Obasanjo’s election, Dangote participated in state-owned enterprise privatization programs, reaping enormous returns. During the 1990s, Nigeria experienced repeated military coups and political instability—but this did not hinder Dangote’s commercial growth. Over decades, he has persistently cultivated relationships with top political figures. Regardless of who holds the presidency, he consistently gains access to the center of power—ensuring smooth business operations. Naturally, this approach has drawn widespread criticism within Nigeria. Yet as Dangote’s wealth and influence have grown, the balance of power has shifted: today, political leaders need his support more than ever. This is because the Dangote Group’s products play a pivotal role in reducing import dependency and conserving foreign exchange. Former Nigerian President Goodluck Jonathan once stated in a speech: “I believe critics of Dangote contribute less than 5% to this nation compared to what he has achieved.”

Dangote Buys 25% Stake in Kenya Pipeline for $327 Million

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Dangote Industries acquired a 25% stake in Kenya Pipeline Co. for $327 million to expand its petroleum distribution network. This investment supports Dangote's $16 billion Lamu refinery project aimed at reducing regional reliance on Middle Eastern oil supplies.

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