Aliko Dangote has attributed China's dominance in African business to its willingness to provide long-term financing, a support he says European and American firms often fail to match. During an interview with Nicolai Tangen, CEO of Norway's Sovereign Wealth Fund, Mr Dangote stated that Chinese companies have taken the lead because of the absence of comparable backing from Western partners. He said Chinese suppliers regularly offer equipment on credit, backed by export insurance, allowing African buyers to pay over four to five years. In contrast, he noted that European firms typically require full upfront payment for large projects. Using his cement business as an example, he explained that a $500 million power plant deal with an Italian supplier would require a full cheque upfront, while a Chinese counterpart would ask for only 20 per cent down, financing the rest. "Obviously, you take the Chinese one," he said. This model, he added, preserves cash flow and enables faster expansion. Mr Dangote stressed that such leverage is essential for scaling industry across Africa. He revealed plans for his conglomerate to spend $45 billion between 2026 and 2030 on expansion projects, saying growth at that level requires strategic financing, not just cash. While critical of Western reluctance, he acknowledged a shift in U.S. posture, citing increased appetite from the U.S. International Development Finance Corporation (DFC) for infrastructure lending in Africa. He described recent DFC engagements as "very hungry for projects" and ready to lend. He also told a visiting Japanese delegation that Japan risks long-term exclusion from African investment unless it brings financing to the table. "What I told them is that Japan will be missing for a very long time," he said, urging foreign partners to come with balance sheets, not just proposals.
Aliko Dangote points out that Chinese firms win African contracts by offering long-term credit, yet his own $45 billion expansion plan relies on the same model he praises. If leverage is key to growth, then his expectation that Japan bring financing to Africa applies equally to his ability to deliver on such massive spending. Western institutions may be slow, but Dangote's call for deep-pocketed partners reveals a dependency on external capital, not just local ambition. His vision for industrial scale hinges on the very financing structures he says have given China the upper hand.
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