- Formal negotiations have begun on Dangotes proposed’ investments in East Africa.
- The discussions cover fertiliser production, energy and transport infrastructure.
- The move strengthens Tanzania’s bid to become a regional manufacturing hub while intensifying competition with Kenya.
- The outcome could shape billions of dollars in industrial investment across East Africa.
President Samia Suluhu Hassan directed government ministries and agencies to begin immediate discussions with Aliko Dangote’s team following a meeting in Dar es Salaam, marking the first formal step towards transforming the proposals into bankable investment projects
The decision signals Tanzania’s determination to secure one of the continent’s biggest private-sector investment programmes at a time when East African countries are increasingly competing to attract large-scale manufacturing projects capable of creating jobs, reducing imports and strengthening regional trade
It also comes as Tanzania and Kenya continue competing to host Dangote’s proposed East African refinery, one of the region’s most anticipated industrial projects
“We have identified areas that can deliver significant value for Tanzania, and we are ready to work together to develop them for mutual benefit,” Dangote said after the meeting
He said Tanzania possesses strong potential to build industries that process local reals, a strategy that has underpinned the growth of his businesses across cement, fertiliser, petrochemicals and refining
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The discussions focus on three sectors that sit at the centre of Tanzania’s industrial ambitions, fertiliser production, energy and transport infrastructure
For Tanzania, securing a fertiliser investment would address one of East Africa’s biggest agricultural constraints
Farmers across the region remain heavily dependent on imported fertiliser, leaving food production vulnerable to global supply disruptions, rising freight costs and volatile international prices
Local manufacturing could reduce import dependence, lower production costs, improve food security and position Tanzania as a supplier of fertiliser across the East African Community
Dangote Group already operates Africa’s largest granulated urea fertiliser complex in Nigeria, producing about three million metric tonnes annually for domestic and export markets, giving it extensive experience in developing and operating large-scale fertiliser facilities
Energy could prove even more important to the proposed investments
Tanzania holds an estimated 57 trillion cubic feet of proven natural gas reserves, among the largest in East Africa, offering one of the key ingredients required for fertiliser manufacturing. Natural gas serves as the principal feedstock for urea production, making reliable gas supply a critical factor in determining where global fertiliser producers invest
The country’s southern Mtwara region combines natural gas red, creating conditions suited for energy-intensive manufacturing
Dangote is already familiar with the investment environment
His three-million-tonne-per-year cement plant in Mtwara remains one of Tanzania’s largest industrial investments and has supplied both the domestic market and neighbouring countries for several years, providing the group with operational experience and established relationships with regulators
The latest talks also underline the growing competition between Tanzania and Kenya to attract one of Africa’s most influential industrial investors
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Kenyan President William Ruto has repeatedly expressed interest in hosting Dangote’s proposed East African refinery, with Mombasa emerging as a preferred location because of its deep-water port, existing petroleum infrastructure and larger domestic fuel market
Those discussions prompted concern in Tanzania after earlier proposals linked the refinery to the Port of Tanga, leading President Samia to seek direct engagement with Dangote to ensure Tanzania remained under consideration
Following the meeting in Dar es Salaam, Dangote reaffirmed that the refinery could still be located in Tanzania if the right commercial conditions are created
“It doesn’t matter where the location is, and Tanzania, we have offered Tanzania to also be a part owner of this refinery,” he said
Beyond the refinery, however, the latest discussions suggest Tanzania is pursuing a broader industrial partnership covering fertiliser production, energy infrastructure and transport projects, potentially making the relationship far more significant than a single investment
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Technical teams from Dangote Group are expected to begin detailed discussions with Tanzanian officials on land allocation, gas supply, infrastructure access, regulatory approvals and commercial frameworks needed to support the proposed investments
The negotiations will determine whether Tanzania can convert political commitment into bankable projects capable of attracting billions of dollars in private capital
For President Samia, securing the investments would advance her government’s ambition to industrialise the economy, add value to Tanzania’s natural rend logistics hub serving East and Central Africa
For Africa’s richest man, the talks represent another step in exporting the industrial model he built in Nigeria, using large-scale investments in manufacturing, energy and infrastructure to serve regional markets, into one of the continent’s fastest-growing economic regions