What Dangote's $1 billion investment means for Zimbabwe

The investment agreement was formalised following a meeting in Harare with Zimbabwean President Emmerson Mnangagwa and senior government officials on Wednesday, November 12.

 The deal marks a revival of earlier efforts as Dangote had visited Zimbabwe in 2015 and explored similar plans in 2018, but those did not advance.

He said the investment package will span a cement plant, a coal mine (or coal supply arrangement), power-generation capacity and a petroleum product pipeline that aligns with Dangote Group’s broader plans for its oil-refining and downstream business.

"We have just signed an agreement between Zimbabwe and the Dangote Group to do various investments in various sectors, some of which are, of course, cement, power generation and a pipeline to bring petroleum products," Dangote said.

Why Zimbabwe now

Dangote commented that the current environment in Zimbabwe shows improved governance, transparency and policy stability compared with his visit a decade ago and cites those as reasons for proceeding now.

From the Zimbabwean side, government officials affirmed that attracting high-impact foreign direct investment is strategic to achieving the nation’s industrialisation goals. The deal aligns with the government’s “Vision 2030” ambition to become a modern, upper‐middle-income industrial economy.

Additionally, the project could generate thousands of jobs, both directly (in the cement plant, mine and power station) and indirectly (in logistics, services and local supply chains). It also helps Zimbabwe reduce its reliance on imports of cement, energy, and potentially petroleum products, thereby breaking supply bottlenecks.

For Zimbabwe, which has, over recent years, suffered from electricity shortages, high industrial import dependence and weak external investment flows, the Dangote commitment represents one of the largest privately-led foreign investment pledges in over a decade.