Dangote coal-fired power plant plans have emerged as Tanzania seeks to secure major industrial investments after losing Dangote’s planned East African refinery. The proposed 2,000MW facility forms part of a wider investment pipeline covering power, fertilizer, ports and transport infrastructure. Tanzania has not yet disclosed the project’s construction cost or implementation schedule.
The proposal follows Dangote Industries’ decision to pursue its planned East African refinery in Lamu, Kenya. The refinery could process about 700,000 barrels of crude oil daily.
Dangote initially considered Tanzania during regional discussions around a refinery at Tanga. However, commercial and technical considerations later favored Kenya for the refinery project.
Consequently, Tanzania is now seeking other projects that can deepen Dangote’s industrial footprint. The strategy could strengthen power supply, agricultural production and southern transport infrastructure.
Dangote Coal-fired Power Plant targets 2,000MW capacity
The proposed Dangote coal-fired power plant represents the largest power project within the current investment discussions. The facility would add 2,000MW of generation capacity to Tanzania’s electricity system.
However, authorities have not announced a project value, financing structure or construction timetable. Therefore, the development remains under investment discussions rather than active construction.
The plant could support Tanzania’s industrialization program by providing electricity for energy-intensive industries. Furthermore, reliable generation could strengthen manufacturing and mineral-processing activities.
The coal-fired proposal also differs from Tanzania’s growing renewable-energy ambitions. Therefore, environmental approvals and energy-policy considerations will likely influence its eventual development.
The power project emerged from talks between President Samia Suluhu Hassan and Dangote. The discussions took place at State House in Dar es Salaam.
A Tanzanian government delegation later visited Dangote’s refinery and petrochemical complex in Lagos. The delegation aimed to advance investment discussions agreed during the presidential meeting.
Other investments Complementing Dangote Coal-fired Power Plant
Beyond the Dangote coal-fired power plant, Tanzania is pursuing several major infrastructure and industrial projects. These include a proposed urea fertilizer plant, port development and a special trade zone.
The investment pipeline also includes a 40-kilometre concrete access road supporting port operations. Additionally, discussions cover transport infrastructure linking Mtwara with Mbamba Bay.
The proposed investments could transform Mtwara into a stronger industrial and logistics center. Dangote already operates a $500 million cement plant in Mtwara. The facility produces approximately three million tonnes annually.
Meanwhile, Tanzania wants Dangote to expand into domestic fertilizer production. The Tanzania Fertilizer Regulatory Authority confirmed Dangote’s interest in establishing fertilizer manufacturing capacity.
The proposed urea plant could reduce Tanzania’s dependence on imported agricultural inputs. It could also support Tanzania’s ambition to serve regional fertilizer markets.
Dangote’s broader African strategy supports this direction. The group plans approximately 20 fertilizer blending plants across Africa by 2028.
The infrastructure discussions therefore extend beyond replacing the refinery opportunity. They create a broader industrial development pipeline connecting energy, agriculture, ports and transport.
Meanwhile, the planned Lamu refinery carries an estimated investment requirement of about $15 billion to $17 billion. Dangote plans to use internal cash, bonds and an initial public offering to finance it.
The proposed refinery could take up to three years to construct. Tanzania, however, may still participate in the Kenyan project following Dangote’s invitation.
For Tanzania, the emerging investment program offers a different route toward capturing Dangote’s regional expansion. Still, developers must complete feasibility work, approvals and financing before construction begins.
The proposed plant would add to Tanzania’s existing coal-to-power development pipeline, including the Tanzania Mbeya coal-to-power project, which received a development greenlight from TANESCO.
Project fact sheet
Project: Dangote Coal-fired Power Plant.
Type: Large-scale thermal power generation facility.
Proposed capacity: 2,000MW.
Technology: Coal-fired power generation.
Country: Tanzania.
Proposed location: Tanzania, with the wider investment program linked strongly to southern Tanzania.
Supporting infrastructure: 40-kilometre concrete access road.
Transport component: Infrastructure linking Mtwara with Mbamba Bay.
Project developer: Dangote Industries Limited.
Current status: Investment discussions and project development.
Expected strategic role: Support industrialization and expand electricity generation.
Existing cement capacity: Approximately three million tonnes annually.
Project team
Project sponsor: Dangote Industries Limited.
Group chairman and chief executive: Aliko Dangote.
Government counterpart: Government of Tanzania.
Investment coordination: Tanzania’s Ministry responsible for Planning and Investment.
Fertilizer regulator: Tanzania Fertilizer Regulatory Authority.
Power-sector stakeholders: Tanzania’s relevant energy authorities.
Port stakeholders: Relevant Tanzanian port and infrastructure authorities.
Transport stakeholders: Tanzanian government agencies overseeing southern transport infrastructure.
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