Dangote to expand Ethiopian cement plant

Global Cement
Published on June 9,2015

Ethiopia: Accoring to Nigeria News, Dangote Group president Alhaji Aliko Dangote has said that ‘plans are afoot’ to double the capacity of the newly-opened US$500m, 2.5Mt/yr capacity cement plant in Mugher, Oromia, Ethiopia. Dangote said that the expansion work would begin before the end of 2015.

The decision to set up and then expand the plant was informed by the ‘enabling’ environment created by the Ethiopian government with massive investment in several large-scale infrastructure projects, including the construction of the continent’s largest hydropower dam. The Ethiopian plant will create direct employment for 2000 people in the main plant operations and logistics, with a fleet of 600 trucks. 5000 indirect jobs will also be created.

Dangote said that achieving real economic integration in African would require political stability and a breakdown of the barriers and borders between countries, which hinders free flow of goods, services and people. “We need to make deliberate efforts to encourage Africans, not just foreigners, to invest in Africa. Dangote Cement is currently in 16 African countries with plans to invest in many more over the next years. There are a number of other successful pan-African brands today such as MTN, Shoprite and Ecobank,” said Dangote. “We need to encourage this trend to see more investments in Africa by Africans. Above all, there is need to encourage the private sector to collaborate with governments across Africa to address the issue of infrastructure deficit, which has plagued the continent for decades.”

Ethiopia’s prime minister Hailemariam Desalegn said that as one of the fastest growing economies in the world, the country’s investment potential had barely been scratched. He said that the government was spending millions of dollars on critical infrastructure to address investment and align with policies that were already in place to aid investors. “Ethiopia represents a lucrative market that has barely been tapped with its 95 million people and growing economy,” said Desalegn.

Ethiopia’s Minister of Industry, Ahmed Abitew, said that, with the new plant, the country’s cement sector would make significant growth in meeting local demand, which has grown due to infrastructural development. According to him, production has risen from 11.2Mt/yr to 17.5Mt/yr. “The government is giving due attention to the industrial sector with its average growth of 20%/yr,” said Abitew.

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