In the US, boss of Nigerian industrial conglomerate Dangote Industries Aliko Dangote has announced a 50/50 partnership with New York private equity company Blackstone to invest US$5 billion in Africa’s energy infrastructure over the next five years.
Mr Dangoke, who outlined the deal while at the Power Africa summit taking place in Washington, said there will be a particular emphasis on power, transmission and pipeline projects.
Dangoke said: “For too long, inadequate energy infrastructure in Africa has been a major obstacle to the continent as it seeks to fulfill its economic potential. I am pleased to partner with Blackstone and the Black Rhino team, who have experience of successfully developing large-scale infrastructure projects, to address this issue in a socially conscious way.”
The two companies have agreed to jointly incorporate, own and operate a management company that would be responsible for the development and management of projects identified and agreed upon across the sub-Saharan African.
The investment is facilitated by Black Rhino, a portfolio company of Blackstone Energy Partners and affiliated funds managed by Blackstone, and Dangote Industries.
Funding energy projects
In other news from the summit attended by 50 of Africa’s leaders, the World Bank Group has committed US$5 billion in new technical and financial support for energy projects in the six African countries that are part of the Power Africa initiative – Ethiopia, Ghana, Kenya, Liberia, Nigeria, and Tanzania.
These funds form part of US$12 billion in new commitments for Power Africa announced this week initiative from the private sector, World Bank and government of Sweden.
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Power Africa: Dangoke invests US$5bn in energy projects as funding pot grows