China Dominates African Business Due to Superior Financing, Says Billionaire Aliko Dangote
By Nexio News
Africa’s wealthiest businessman, Aliko Dangote, has declared China the continent’s top business partner, crediting its aggressive financing strategies for outpacing Western competitors in Africa’s industrial and infrastructure sectors.
In a candid interview with Nicolai Tangen, CEO of Norway’s Sovereign Wealth Fund, Dangote explained that Chinese firms dominate because they offer long-term credit solutions—something Western nations frequently fail to provide.
Why Africa Chooses China
Dangote, whose empire spans cement, oil, and other industries, said Chinese companies thrive by backing projects with state-supported financing. Unlike Western suppliers, who often demand hefty upfront payments, Chinese firms extend credit through agencies like China Export & Credit Insurance Corporation (Sinosure), allowing African buyers to stagger payments over years.
“If I go to Italy for a $500 million power plant, they’ll ask for full payment upfront,” Dangote said. “But the Chinese say, ‘Just pay 20%, finance the rest over five years.’ Which would you pick? Obviously, China.”
This model preserves cash flow, enabling faster expansion. Dangote’s own cement business has benefited from Chinese equipment suppliers offering deferred payment plans—a flexibility European competitors rarely match.
$45 Billion Expansion Ahead
Financing access is critical to Dangote Industries’ ambitious growth plans. The conglomerate aims to invest $45 billion between 2026 and 2030 in expansion projects, leveraging strategic credit rather than depleting cash reserves.
“I need to leverage intelligently to grow at this scale,” Dangote said. “Tying up all my capital in one project isn’t sustainable.”
U.S. Steps Up, Japan Lags
While China leads, Dangote noted the U.S. is showing renewed interest in African infrastructure. The U.S. International Development Finance Corporation (DFC) has become “very hungry” to fund projects, signaling potential for stronger U.S.-Africa partnerships.
However, he criticized Japan for lagging behind. During a recent meeting with Japanese delegates, Dangote warned that without competitive financing, Japan risks missing out on Africa’s booming industrial sector.
“I told them: Bring your balance sheet, not just proposals,” he said. “Africa has choices now.”
Global Race for African Influence
Dangote’s remarks highlight a broader shift in Africa’s economic alliances. As nations compete for influence, financing terms—not just technology—are becoming the deciding factor. With China’s flexible credit policies and the U.S. stepping up its game, African businesses and governments now have more leverage than ever.
— Reported by Nexio News
