Blackstone’s Steve Schwarzman on Dangote and investing in Africa
Thursday, October 23, 2014
“He is a smart guy, and he always has something informative to say.”
This is how Stephen Schwarzman, CEO of US-based private equity and investment banking giant Blackstone, describes Nigerian industrialist Aliko Dangote, believed by many to be Africa’s richest man. His Dangote Group has interests in a number of industries, including cement, food and property.
Black Rhino, a company backed by Blackstone, recently announced a joint venture with Dangote that will see the two entities invest up to US$5bn over the next five years in power generation and distribution ventures across sub-Saharan Africa.
According to Schwarzman, some of this electricity will be used by Dangote’s businesses, while the rest will be sold on.
This is however not Blackstone’s first transaction in the region. Through its portfolio companies it has invested in the Bujagali Hydroelectric Power Station in Uganda as well as in Ghana’s oil industry.