Why Dangote’s $1bn deal is a big deal for Zimbabwe’s economy| The New Times

HARARE – The entry of Africa’s richest man into Zimbabwe’s economy has ignited remarkable hype in the country’s reconstruction process after decades of economic regression, precipitated largely by damaging sanctions imposed on the southern African country by Western countries. Aliko Dangote, whose net worth reached $30.3 billion in October, making him the first African to hit this milestone, has set his focus on investing in Zimbabwe’s key economic sectors in a US$1 billion deal touted as a game changer in Harare. Dangote’s investments will span cement production, power generation, and a regional fuel pipeline which will run from the west Atlantic coast of Namibia, where the billionaire businessman is building a large refinery. The Nigerian magnate was in Zimbabwe on 12 November to meet President Emmerson Mnangagwa and finalise the billion-dollar investment deal. His entry into the southern African country has ignited a wave of excitement amid optimism that his groundbreaking investments will add impetus to Zimbabwe’s Vision 2030 ambition, which aims to catapult the country to upper middle-income status. The timing of Dangote’s investment deal is a major boost to Mnangagwa’s vision. For instance, the construction of the 2,000 km oil pipeline between Walvis Bay, Namibia, and Bulawayo will facilitate the import of refined petroleum products, reduce Zimbabwe’s annual energy bill by 40 percent, and help stabilise fuel prices. This is billed to be a major push for intra African trade under the African Continental Free Trade Area, which is expected to boost intra African trade, foster industrialisation, reduce tariffs, and improve economic integration by creating the world's largest free trade area. No doubt, the Nigerian magnate’s investment deal, especially the pipeline project signed at State House in Harare, will accelerate Zimbabwe’s industrialisation drive and boost intra African economic integration. While many, including much bigger deals, have been signed in Zimbabwe, the significance of the Dangote visit is affixed to investor confidence building momentum, the attendant positive contagion, and game changing perception. No doubt, bringing Africa's richest man, with operations in 17 countries across the continent, to Zimbabwe after failed attempts in 2015 and 2018 was a strategic and significant ground breaking move. The investment deal will certainly not fix all of Zimbabwe's numerous economic challenges, but it will definitely provide an impactful foreign direct investment inflow, employment, and the much needed confidence in the economy. Dangote’s final breakthrough in Zimbabwe was facilitated by a team of investment experts led by Senziwani Sikhosana, an entrepreneur who has overseen major financial transactions for the past 25 years.