Zimbabwe: U.S $1.2 billion Dangote projects licensed
The Zimbabwe Investment Authority has issued the Dangote Group with licenses for three projects worth $1.2 billion,
paving way for Aliko Dangote to start implementing business deals agreed with Government earlier this year. The three projects are a cement manufacturing plant, a coal mining venture and an energy or power plant.
The issuance of the investment licenses follows a visit to Zimbabwe last month by Dangote and his team. During the visit, they expressed interest in coal mining, cement manufacturing and power generation.
Zimbabwe Investment Authority chairperson Dr Nigel Chanakira said ZIA said: “Investment licences were issued for the cement manufacturing plant, the coal mining venture and the energy or power venture which will be using coal off take production,” he said
“There is also a possibility of the coal mined being shipped out through to the Zambian operation and then further up to the Congo.
For us, we are excited because it means greater exports.” Dr Chanakira said the Dangote Group’s investment would greatly benefit Zimbabwe’s construction industry.
He said construction of a cement production plant would likely reduce the price of the commodity. “Without any shadow of doubt, from all indications this will be the largest plant, so it speaks to the dynamics in terms of competitive pricing in cement and the construction industry,” Dr Chanakira said. “Generally, housing building costs must come down.
“The licensing total amount was $1,2 billion and that adds a punch because at the end of September we are now talking of $2,9 billion worth of investment license approvals in total that will come through.”