Africa’s richest man, Aliko Dangote, has disclosed that his business conglomerates have invested over $25 billion in key sectors such as oil and gas, cement, and sugar in Nigeria over the past seven years.

This significant financial commitment, which is seen as a reflection of Dangote’s confidence in Nigeria and, by extension, Africa as a viable investment destination, was disclosed by him while speaking on the sidelines of the recently concluded 79th United Nations General Assembly (UNGA 79) in the U.S.

The business tycoon explained that these investments are not only a demonstration of his belief in the potential of Africa’s markets but also a call to action for other investors to follow suit. He indicated that by actively investing in the continent, Dangote seeks to show that the challenges facing African economies, while real, are solvable.

“In the areas of our own investment, we’ve invested heavily in the last couple of years in oil and gas, which we spent—between the refinery, cement, and sugar backward integration—in seven years, we have invested over $25 billion,” Dangote stated.

Building Confidence in Africa

According to Dangote, this substantial investment is aimed at inspiring confidence in other investors, particularly those who might be hesitant about entering African markets. He pointed out that African leaders and entrepreneurs need to lead by example, proving that despite the various hurdles, the opportunities for growth and success are immense.

“Why are we doing that? We are doing that to show confidence. If we don’t really move by investing in our continent, it will be very difficult for other people to come in and invest,” Dangote explained. “We need to tell them that there is quite a lot of things happening in Africa, and the sky is the limit. Yes, of course, there are a few issues here and there, but those issues are solvable.”

This sentiment reflects Dangote’s broader vision of fostering a narrative shift around Africa, challenging the perception that the continent is a risky environment for investment. By showing that Africans themselves are investing in large-scale, long-term projects, he hopes to attract more international stakeholders to engage in the continent’s economic development.

A Vision for Africa’s Self-Sufficiency

Dangote also spoke about his commitment to making Africa self-sufficient, with an emphasis on reducing the continent’s reliance on imported goods. As a strong advocate of domestic production, his goal is to boost local manufacturing capabilities, particularly in industries that have traditionally relied on imports.

In Dangote’s view, the overdependence on imported goods is a key contributor to poverty in Africa. The practice of exporting raw materials and then importing finished products only stifles job creation and hinders economic growth. To counter this, Dangote’s companies are heavily involved in backward integration projects—initiatives aimed at producing goods locally by controlling both the production and supply chain.

“We Africans must lead in terms of this. We must make sure that we find jobs for our youths. That’s the kind of legacy I want to leave: to make Africa self-sufficient for what we consume,” Dangote remarked.

This vision aligns with his broader mission of creating employment opportunities for Africa’s growing youth population. With Africa projected to have the world’s largest workforce by 2050, Dangote stressed the importance of investing in industries that can absorb this demographic, fueling sustainable economic growth.

Changing the Narrative Around Wealth

While Dangote is widely recognized as Africa’s richest man, he expressed a desire to be remembered for more than his wealth. In his speech, he revealed that being labeled as the richest person on the continent makes him uncomfortable, as it detracts from what he sees as his real contribution—shaping Africa’s future through industrial investments.

“To me, anytime people address me as Africa’s richest person, I really get a little bit uncomfortable or upset. I’d rather be called somebody who creates the future of Africa. I invest a lot in Africa,” he said.

Dangote’s emphasis on building a lasting legacy highlights his long-term commitment to the continent. His investments, particularly in industries like oil refining, cement manufacturing, and sugar production, are geared towards creating a ripple effect that will elevate entire sectors of the African economy.

The Dangote Group, led by CEO Aliko Dangote, is one of the largest conglomerates in Nigeria and Sub-Saharan Africa. Its cement subsidiary is the largest employer in Nigeria, with over 19,000 Nigerians in its workforce. The conglomerate’s investments are also responsible for the creation of tens of thousands of jobs across the continent, with operations extending into several African countries.

One of Dangote’s most ambitious projects is his $19 billion refinery, which is set to become one of the largest in the world once completed. The project is staffed primarily by young engineers, many of whom are recent graduates from Nigerian universities. This underlines Dangote’s commitment to nurturing local talent and providing opportunities for young Africans to build careers in high-skill industries.

Winich Farms, a Nigerian Agtech startup making the supply chain of farm produce seamless for all stakeholders, has secured US$3 million in pre-series A funding to enhance its technology and optimize its operations. The round is a mix of equity and debt.

The equity funding of US$2.5 million came from Acumen Resilient Agriculture Fund (a East and West Africa focused impact venture capital fund ), Climate Resilient Africa Fund, Marula Square, Plug and Play, and Tekedia Capital. Lagos-based Sahel Capital supplied the $590,000 debt funding.

Since launching in 2020, Winich Farms has built an ecosystem of more than 150,000 users, including farmers, off-takers (small businesses and factories), logistics partners, and collection points agents. The company provides off-takers with inventory management tools that help them order and manage raw materials from farmers across Nigeria.

This is possible through the thousands of farm produce collection points that Winichfarm has accumulated across 30 out of the 36 states in Nigeria.

Back in the day, farmers had to wait for market days — sometimes every two weeks or even once a month — just to sell their produce. It left them in a tough spot, often relying on middlemen who took advantage of their desperation. But now, thanks to this company, they can sell whenever they want.

All they have to do is drop their produce at the nearest collection point, and they get paid within 48 hours. From there, the produce is gathered and shipped to off-takers. With geo-zone technology, Winich Farms ensures orders are fulfilled from the closest collection points, making deliveries quicker. For instance, buyers in Lagos get their orders from farmers in nearby Ogun or Osun states, cutting down delivery time.

The company is also helping smallholder farmers, who don’t have immediate access to the financial system, build their credit worthiness, by tracking and ranking their earnings over time and then connecting them to its financial institution partners.

It recently launched a debit card in partnership with Sterling Bank, allowing farmers to save their funds in the bank with the certainty that they could get it whenever they want.

The company’s GMV has grown 300% from US$10 million in 2022 to US$30 million at the end of the 2023 financial year. Last month, the company expanded into Tanzania to facilitate — not just local supply chains — but exportation into the Middle East and Europe.

Richies Attai, CEO and co-founder, said, “For us, Winich Farms is more than just a profit oriented business, but a cause at heart improving the lives of smallholder farmers, informal processors, and retailers who puts food on our tables daily but have been largely marginalized.

This funding is strategic towards further enhancing our technology infrastructure making it more user friendly, while advancing our data driven approach in enhancing the farmers ability to access financially inclusive services like credit and insurance to increase productivity, while scaling operations to accommodate our expansion plans.”

Tamer El-Raghy, Managing Director of Acumen Resilient Agriculture Fund (ARAF), said: “We are excited to partner with Winich Farms as their solution addresses a critical need for rural farmers in Nigeria by facilitating efficient market access Smallholder farmers face multiple bottlenecks along the value chain, limiting their productivity and access to markets, which in turn hinders their income potential and growth.

Winich’s technology not only connects rural farmers directly to buyers, it also connects them to financial products, towards providing them with access financing to facilitate increased production capacity.  Investing in Winich aligns with our goal at ARAF of growing local businesses that support smallholder farmers towards increased productivity, sustainable agricultural development, better livelihoods, and increased food security”

Sherief Kesseba, Partner at Climate Resilient Africa Fund (CRAF), said: “We warmly welcome Winich Farms to CRAF’s portfolio. Winich connects smallholder Nigerian farmers to two things they desperately struggle to access: finance and end-markets. With a tech-enabled, Capex-light model driving efficient growth, we believe Winich will generate growth, and enhance climate resilience for farmers.”

Stefano Olcese, Plug and Play Tech Center, said: “The marketplace category in agtech has attracted the highest levels of capital in developing countries over the past few years. Winich Farms stood out as the top investment opportunity to us, successfully addressing the ‘middlemen problem’ by delivering value to both consumers and smallholder farmers.”

Biola Alabi, Partner at Acacia Ventures, said: “Winich Farms operates at the intersection of agritech and financial inclusion, which is why it perfectly aligns with our investment thesis and why we invested in them” General Partner at Acasia Ventures Biola Alabi says.

“With Riches’ deep-rooted personal connection to smallholder farmers, Chichebem’s technical expertise, and Winner’s operational experience, they offer a powerful combination. Their experience as second-time founders in this space further demonstrates their commitment to overcoming challenges and building a sustainable business.”

Elvira De Jong, Partner at Marula Square, said: “We invested in Winich Farms because of the strength and vision of their exceptional leadership team, whose deep expertise and passion for sustainable agriculture align with our values.

Their innovative approach to modernizing farming practices shows immense impact potential, particularly in improving food security and empowering local farmers. With a scalable business model and growing demand in the markets, Winich Farms offers not only a compelling opportunity to generate meaningful social and environmental change but also substantial financial upside for investors.”

Segun Ajayi-Kadir, Director-General (DG) of the Manufacturers Association of Nigeria (MAN), has called for government officials to face consequences for implementing policies that devastate businesses and disrupt the economy.

Speaking during a forum themed ‘Nigeria’s Challenging Economy: Strategies for Recovery,’ organized by Channels Television in celebration of Nigeria’s 64th Independence anniversary, Ajayi-Kadir underscored the need for accountability within the government.

“There must be consequences for government officials who make policies that ruin businesses,” Ajayi-Kadir stressed. “I mean, you make a policy today, it becomes a disaster for industry, and government simply changes it, and you walk away. We don’t have this luxury in the private sector. If you make a mistake, your business is gone, and you could distrain your property. So, I think we need to see that movement also on the part of government.”

Ajayi-Kadir’s remarks resonate with a growing belief among Nigerians that policymakers act recklessly because they face no accountability for the economic damage their decisions often cause. Many have argued that the country’s policymakers are shielded from the consequences of their actions, unlike in the private sector where poor decisions are met with consequences.

Comparing the private and public sectors, it is believed that the former thrives and the latter deteriorates due to their different approaches to policymaking.

Interest Rates, Stifling Businesses and Productivity

Ajayi-Kadir also voiced concerns about the persistently high interest rates in Nigeria, which have made borrowing increasingly expensive for businesses. He described the rising interest rates, currently between 30-35%, as unsustainable, particularly in an economy where consumer purchasing power has been eroded by inflation, unemployment, and stagnant wages.

According to Ajayi-Kadir, many businesses are finding it nearly impossible to survive in such an environment.

“We should be able to assuage the challenges we are having with continuously raising interest rates,” he said. “You’ve done it for more than 18 months plus, and you’ve not done any impact assessment on the productive sector. I think you need to be able to insulate that sector so that you can inflate the economy.”

The ongoing increases in the monetary policy rate (MPR) by the Central Bank of Nigeria (CBN) are part of efforts to curb inflation, but Ajayi-Kadir noted that the CBN’s approach is undermining the productive sector. He pointed out that despite over 18 months of these rate hikes, there has been no comprehensive evaluation of their impact on the manufacturing sector or the broader economy.

The lack of impact assessments, according to the DG, is indicative of the disconnect between policy formulation and real-world business needs.

The Need for a Coordinated Industrial Policy

Beyond interest rates, Ajayi-Kadir highlighted the absence of a clear and consistent industrial policy to guide Nigeria’s economic recovery. He called for the development of a robust industrial policy that would provide long-term direction for the country’s industrialization efforts.

“There’s a need for an industrial policy to guide the government’s approach to industrialization,” he said.

According to the DG, such a policy would promote better coordination between key government ministries, including the Ministry of Industry, Trade, and Investment, the Ministry of Finance, and the CBN.

“I must say that policy coordination is extremely important for us because you can’t operate in such a way that you don’t know what to expect tomorrow. It will basically define where we want to be, and it will guide our operations,” he said.

Ajayi-Kadir’s comments reflect broader concerns in Nigeria’s business community about the unpredictable nature of government policies, which frequently change without warning, causing disruption and uncertainty in the marketplace.

For instance, in early 2020, the Lagos State government abruptly announced the ban on Bike-hailing startups, Gokada, ORide, MaxNG, and other commercial motorcycles (okada). The ban also affects Keke Napep (tricycle) operators within the state.

The decision eventually stifled the bike-hailing idea, which had made commuting in the state’s wild traffic easier, resulting in the loss of millions of dollars in investors.

Ajayi-Kadir argued that improved coordination between government ministries and agencies would prevent the kind of policy flip-flopping that has hurt businesses in the past.

Ineffective Nigerian Embassies and Lack of Economic Diplomacy

Another issue Ajayi-Kadir raised was the ineffectiveness of Nigeria’s embassies abroad in promoting Nigerian businesses and attracting foreign investments. He criticized the country’s embassies for not doing enough to facilitate market penetration for Nigerian products in foreign markets.

“There needs to be key performance indicators (KPIs) for our embassies to track their effectiveness in helping Nigerian products reach foreign markets and attracting foreign direct investment (FDI) to Nigeria,” he said.

Ajayi-Kadir emphasized that embassies should play a crucial role in economic diplomacy, helping to forge international partnerships that would boost Nigerian industries and increase the country’s foreign exchange (FX) inflows. However, without clear KPIs and accountability measures, embassies have largely failed to fulfill these roles.

While commending Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, for his efforts to stabilize Nigeria’s economy, Ajayi-Kadir urged the government to avoid playing politics with economic policies. He called for a more deliberate and coordinated approach to policymaking.