Africa’s richest man, Aliko Dangote, has made a compelling case for a protectionist, “Africa First” industrial policy, arguing that the continent’s sustained reliance on imports and foreign aid is exporting jobs and hindering economic growth.
Speaking at the 32nd Annual Meetings of Afreximbank in Abuja, Dangote presented his views on the continent’s economic challenges, drawing on his own industrial experience and providing a blueprint for self-sufficiency.
A main point of his address was the link between import dependency and poverty. “Once we remain a dumping ground, we will never be able to create jobs,” Dangote said. He connected this to a “make America great” philosophy, suggesting that Africa must adopt a similar mindset. “Since it is America first, we should also say Africa first. We should try and create jobs,” he stated, attributing Asia’s economic rise to a culture where entrepreneurs, regardless of how they made their money, invested their capital at home. He contrasted this with Africa, where “the majority of people take the money out of the continent.”
Dangote argued that to industrialise, countries must take tough decisions, including implementing tariffs to protect domestic industries from dumping. He drew a parallel to the Trump administration’s steel tariffs, which he said were necessary to prevent the collapse of the American steel industry. He described an open market without safeguards as “going to bed… you open up your windows… you are not going to be, you won’t be able to have a good sleep because you’ll be disturbed by mosquitoes.”
He pointed to the success of Nigeria’s cement industry as a prime example of effective policy. He recounted a conversation with former President Olusegun Obasanjo who, concerned about Nigeria’s status as a top cement importer, implemented a backward integration policy. This policy required importers to set up factories in Nigeria to be eligible for import licenses. Dangote credits this decisive action with a complete turnaround of the sector.
“If you don’t set up a factory, you cannot import,” Dangote explained of the policy. He noted that this led to a massive industrial expansion, with Nigerian production soaring from 1.9 million tons to over 60 million tons today. He proudly stated that Nigeria is now the largest exporter of cement in Africa, with his company’s new export-focused factory projected to add at least $500 million to the nation’s export earnings.
Dangote identified two primary challenges hindering industrial growth in Africa: a lack of reliable electricity and inconsistency in government policies. He contended that these issues create a challenging environment for investors.
He also addressed the operational success of his new refinery and fertilizer plant. He confirmed that the Dangote Refinery is exporting jet fuel to major economies like the United States and Asia, and that 37% of his fertilizer production is sold to the U.S. market. This, he noted, demonstrates what is possible when bold projects are executed. However, he admitted that if he had known the full extent of the challenges in building the refinery, he might not have tried, adding that the support of local banks, led by Afreximbank, was critical.
On the issue of corruption, Dangote offered a unique perspective. While acknowledging its presence across the globe, he stated that Africa’s situation is different because “our corrupt people, when they steal the money, they take it, they fly the money out of the continent.”
He compared this to countries like Indonesia and Thailand, where corrupt individuals might have kept their ill-gotten gains within the continent, thereby contributing to the local economy.
He called for African entrepreneurs to accept their responsibility as the primary drivers of the continent’s progress. “We African champions, we need to understand that we are the only people that can make Africa great. Nobody will do that for us,” he said.
He stressed that the job of an industrialist is not to accumulate wealth but to “create worth” by creating jobs and expanding the economy, which in turn invites foreign investors. He added, “Foreign investors, they just don’t come that easy. So what we need to do is to encourage domestic investors.”
When questioned about Africa’s ideal foreign partners, Dangote redirected the focus to African institutions. He contended that if Africa could have “ten institutions like African banks,” the continent could be transformed into “a heaven in the next five years.” He expressed his strong belief in the vision and mission of African financial institutions like Afreximbank, seeing them as essential connectors for trade finance.
He also provided insights into his company’s revolutionary supply chain model for petroleum products in Nigeria. He revealed a zero-charge delivery system for gasoline and diesel across the country, a move he believes will foster competition and significantly improve distribution efficiency.
Finally, Dangote announced plans to list the fertilizer business on the stock exchange this year and the refinery next year. He noted that listing the refinery is important to counter the perception of a monopoly, allowing the public to become part-owners.
