Business
Dangote partners with Blackstone, Carlyle to invest in Africa’s energy infrastructure
Aliko Dangote, CEO and Founder of The Dangote Group speaks during the final session of the World Economic Forum on Africa meeting, June 6, 2008. PHOTO/Mike Hutchings/Reuters
The Dangote Group is in the process of partnering with the world’s two biggest private-equity firms – The Blackstone Group and The Carlyle Group to invest up to US$ 5 billion in Africa’s energy infrastructure.
Aliko Dangote, whose cement and commodities businesses built him a US$24.4 billion fortune, said he struck separate agreements with the private-equity firms, attracting new capital to help address Africa’s energy demands. He committed to invest a combined US$5 billion by 2019 with the Blackstone Group in power projects in sub-Saharan Africa, and he also formed a joint venture with the Carlyle Group to invest an unspecified amount in Nigerian oil and gas ventures and other sub-Saharan projects.
Many sub-Saharan African nations have a funding shortfall of US$50 billion a year that is needed to ease energy shortages and transportation bottlenecks. As a result, sub-Saharan Africa faces energy prices that are too high, and a large percentage of of the population, lacking electricity.
The Blackstone Group will commit half of the US$5 billion in the next 5 years, with the remaining US$2.5 billion coming from the Dangote Group.
“It is a place where people make good money,” Dangote said of sub-Saharan Africa. Business in Africa is getting easier as governmental practices become more predictable and policies are friendlier to outsiders.
The Dangote Group and the Blackstone Group will search for projects through Black Rhino Group, an African infrastructure developer. The team, will be based in Johannesburg – South Africa and Dakar – Senegal.
