Nigerian billionaire Aliko Dangote has signed a landmark $1 billion investment deal with Zimbabwe, marking a significant vote of confidence in the country’s economy under President Emmerson Mnangagwa’s administration. The agreement, signed on Wednesday, will see Dangote’s conglomerate, the Dangote Group, invest in multiple sectors including cement manufacturing, power generation, fertiliser production, and petroleum.

According to Dangote, the investment will involve the supply of petroleum products from the group’s massive oil refinery in Nigeria, described as the world’s largest single-train refinery, through a regional pipeline system. The refinery, located in Nigeria, will supply petroleum products to Zimbabwe via a pipeline that will pass through Namibia’s Walvis Bay.

Dangote’s interest in Zimbabwe’s investment potential was rekindled by the country’s improved economic management and transparency under the current government. He praised President Mnangagwa’s economic reforms, likening them to a student excelling after years of hard work. The billionaire’s return to Zimbabwe comes nearly a decade after his first visit in 2015, when the group expressed initial interest in establishing a cement plant and investing in coal mining. However, those plans stalled due to regulatory hurdles and economic instability.

The new investment is expected to boost Zimbabwe’s industrial output and create jobs across several sectors, particularly in the construction and energy industries. This marks one of the most significant foreign investment pledges to Zimbabwe in recent years, potentially strengthening ties between Harare and one of Africa’s most influential business empires. The deal is a significant development for Zimbabwe’s economy, which has faced challenges in recent years. With this investment, the country is poised to benefit from Dangote’s vast business experience and resources, potentially leading to increased economic growth and development.

The investment is also expected to have a positive impact on the region, as it will create a new pipeline system that will supply petroleum products to Zimbabwe and other neighboring countries. This will not only boost economic activity but also increase energy security in the region. As Zimbabwe continues to implement economic reforms, the country is likely to attract more foreign investment, which will be crucial in driving economic growth and development.