Dangote, Ramaphosa Clash Over Currency Risk and High Rates in Africa’s Power Funding Gap
Aliko Dangote and South African President Cyril Ramaphosa have offered differing views on why Africa still struggles to finance major power projects despite funds being available in local markets. Ramaphosa said the key issue is making energy projects well structured and bankable enough for local lenders and investors. Dangote agreed that funds exist but argued that high interest rates and unstable exchange rates make large-scale borrowing too risky. Dangote warned that borrowing in dollars while a project earns revenue in a weaker local currency can expose investors to severe foreign-exchange losses. He said power projects should first be financed in the currency in which they earn revenue, with credible foreign-exchange support where needed. Both leaders agreed that reliable electricity can expand businesses, create jobs and raise government revenue. The debate underscores the need for better project design, fair pricing and risk-sharing structures to unlock private investment in Africa’s energy sector.
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