Africa’s business mogul and President of the Dangote Group, Alhaji Aliko Dangote has sought regulatory approval to commence development of a coal-fired plant. The plant is expected to power a Dangote owned $500 million cement factory in Mtwara, Tanzania.

“Dangote Industries applied for a 75 MW electricity generation licence to build, own and operate a coal-based captive power plant adjacent to its cement manufacturing plant,” a statement released by state-run Energy and Water Utilities Regulatory Authority (EWURA) said on Tuesday.

Construction at the cement facility has already commenced and should be commissioned next year. It holds a production capacity of 3 million tonnes per annum

With most African business societies having to contend with unreliable power supply, larger conglomerates – with the financial muscles to embark on independent power projects – are increasingly ditching public power, decreasing reliance on national grids and government-driven energy systems.

Tanzania, East Africa’s second largest economy, is expected to grow at seven percent in five years with influx from manufacturing and mining sector. Dangote Cement hopes to take advantage of the surge in local demand for cement not only in Tanzania but across East Africa.

Dangote cement currently operates across 13 African countries with annual revenue averaging $2.45 billion. This has catapulted Dangote to the position of Africa’s largest cement producer.

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