Dangote Cement to Invest $400 Million in Ethiopia Expansion
Aliko Dangote, Africa’s wealthiest individual, has unveiled a major expansion plan for his Dangote Cement operations in Ethiopia. The $400 million investment will revive a second production line at the Mugher Cement Plant, increasing the plant’s total annual capacity to 5 million tonnes. This move reflects Dangote’s continued commitment to bolstering Africa’s manufacturing sector and reducing the region’s reliance on imported cement.
The Mugher Cement Plant, which began operations in 2015, has faced a series of challenges, including regional instability that has led to periodic violence, as reported by Bloomberg. In 2018, the facility suffered significant disruptions, including the tragic loss of lives when the country manager and two other staff members were shot during an attack. Despite these setbacks, Dangote Cement has persevered, successfully repaying all its loans and repatriating profits from its Ethiopian operations. During an announcement in Addis Ababa, Dangote explained that the expansion project, which includes a second production line, is expected to be fully operational within the next 30 months. This will position the Mugher plant to meet growing demand for cement in Ethiopia and neighbouring markets, contributing to infrastructure growth in the region.
Alongside this expansion, Dangote also revealed plans to establish a greenfield cement grinding unit with an additional 3 million-tonne annual capacity. The new facility will further solidify Dangote Cement’s leadership in the African market, where it already operates in over 10 countries, including Nigeria, South Africa, and Tanzania. In addition to cement production, Dangote’s interests in Ethiopia extend to agriculture. In collaboration with Ethiopian Investment Holdings, Dangote Industries is investing in the Omo Kuraz Sugar Factory, a significant step in enhancing the country’s sugar production capabilities. Dangote’s influence spans a vast range of industries across Africa, with a primary focus on manufacturing, infrastructure, and agriculture. As the continent’s largest cement producer, Dangote Cement plays a crucial role in Africa’s construction industry, helping to reduce reliance on imported materials. His vast business empire also includes Dangote Refinery in Lagos, which is set to be one of the world’s largest single-train refineries, further cementing his role in driving Africa’s economic self-sufficiency.
