Dangote Signs Historic $1 Billion Deal with Zimbabwe to Build 2,000km Pipeline from Namibia, Boosting Regional Energy Security.

Harare, Zimbabwe – In a landmark agreement poised to transform Southern Africa’s energy landscape, Nigerian billionaire Aliko Dangote and the Zimbabwean government have signed a $1 billion investment pact, including the construction of a 2,000-kilometer fuel pipeline stretching from Namibia’s Walvis Bay port through Botswana to Bulawayo, Zimbabwe’s industrial hub.

The deal, announced on Wednesday during a high-level meeting at State House between Dangote, Africa’s richest man and founder of the Dangote Group, and President Emmerson Mnangagwa, encompasses investments in energy, cement, fertilizer, and infrastructure sectors. It marks a significant vote of confidence in Zimbabwe’s economic reforms under the Vision 2030 agenda, aimed at accelerating industrialization and reducing reliance on imported fuels from Europe and Asia.

“This partnership reflects growing investor confidence in Zimbabwe’s economic transformation,” Mnangagwa said in a statement released by his office. The agreement was formally inked by Zimbabwe’s Finance, Economic Development and Investment Promotion Minister Mthuli Ncube on behalf of the government.

A Game-Changing Pipeline Project

At the heart of the deal is the ambitious transnational pipeline, estimated at over $1 billion in total scope, which will facilitate the transport of refined petroleum products across the Southern African Development Community (SADC) region. The infrastructure will connect to a massive 1.6-million-barrel storage facility that Dangote Petroleum Refinery is already developing in Walvis Bay, Namibia. From there, the line will traverse more than 2,200 kilometers—slightly longer than the headline figure—through Botswana before terminating in Bulawayo, with potential extensions to Zambia and South Africa.

Dangote, speaking to journalists after the signing, emphasized the project’s scale: “We are in the business of producing oil and have the largest refinery in the world, single train, in Nigeria. We’re bringing it to Walvis Bay and then piping it down here to Southern Africa.” He added that the broader investments “will be over a billion because of the pipeline,” underscoring its role in lowering fuel import costs and enhancing regional trade integration.

Presidential spokesperson George Charamba hailed the initiative as a “key transnational matter for Zimbabwe,” noting it could fundamentally alter the country’s production structure by making fuel more affordable and reliable for industries. The pipeline is expected to reduce transportation times and costs, positioning Zimbabwe as a central energy corridor for the subcontinent.

Broader Investments to Fuel Industrial Growth

Beyond the pipeline, the Dangote Group—Africa’s largest diversified industrial conglomerate, with operations in 18 countries—pledged commitments across multiple fronts:

• Cement Production: Expansion of manufacturing facilities to support infrastructure projects like roads, housing, and industrial parks, building on Dangote Cement’s status as the continent’s top producer.
• Fertilizer Sector: Investments leveraging Zimbabwe’s agricultural strengths to boost food security and exports, including a new plant to produce affordable inputs for regional farmers.
• Energy and Power: Development of a coal-fired thermal power station and potential coal mining operations to address chronic electricity shortages and power industrial operations.

These initiatives align with Zimbabwe’s push for self-sufficiency, with Dangote expressing enthusiasm for the country’s “stable and investor-friendly environment.” The group, known for its massive refinery in Nigeria and recent fertilizer plant, aims to consolidate its Southern African footprint, where it already has projects in Namibia, Zambia, and South Africa.

Revival of Stalled Ambitions

This deal revives Dangote’s long-standing interest in Zimbabwe, dating back to 2015 when he proposed a $400 million cement plant and energy ventures under then-President Robert Mugabe. Those plans faltered amid bureaucratic hurdles, demands for kickbacks from officials, and currency instability. “What went wrong the first time? Regulatory red tape and corruption,” one analyst noted, but Mnangagwa’s administration has since implemented reforms, including eased foreign investment rules and anti-corruption measures.

Dangote’s return signals a “turned around” Zimbabwe, as described by observers. His visit, which included meetings with business leaders and a nod to late investor Harpal Randhawa’s widow, underscores improved bilateral ties. “The Dangote Group’s confidence in our economy is a powerful endorsement,” Mnangagwa added.

Regional and Economic Implications

Economists predict the pipeline could slash fuel prices by up to 20% in Zimbabwe and neighboring countries, spurring manufacturing and agriculture while creating thousands of jobs in construction and operations. For SADC nations, it promises greater energy security amid global supply chain disruptions.

However, challenges remain, including securing right-of-way agreements across borders, environmental assessments for the coal components, and funding timelines. The Dangote Group has not disclosed exact construction start dates, but sources indicate feasibility studies could begin in early 2026.

As Southern Africa eyes deeper integration, this deal positions Dangote as a pivotal player in the continent’s industrial renaissance. “We’re committed to long-term development,” Dangote affirmed, closing the ceremony on a note of optimism for a more connected, prosperous region.