Aliko Dangote, Africa’s richest man, announced a $400 million plan to revive a second production line at the Mugher cement plant in Ethiopia, aiming to double the facility’s annual capacity to 5 million tons.
The Ethiopian plant that became operational in 2015 has faced challenges, including recurrent violence in the region, which has led to the vandalism of vehicles and machinery by protesters.
The country manager of Dangote Cement Plc and two other staff were shot dead in 2018.
“Despite the ups and downs, we have successfully repaid all our loans and repatriated our profit,” the Dangote Industries Ltd. chairman and chief executive officer told reporters on Saturday in the Ethiopian capital, Addis Ababa. The expansion project is expected to be operational within the next 30 months, he said.
Dangote also announced plans to establish a new greenfield cement grinding unit with a capacity of 3 million tons per annum.
Also Read: Dangote Cuts Petrol Price for Nigerians in New Rates
In collaboration with state-owned Ethiopian Investment Holdings, Dangote Industries will invest in the Omo Kuraz sugar factory, he said.
By doubling down on his Ethiopian investments, Dangote is set to ramp up his position as a major cement producer in Africa, increasing overall capacity to 55 million tonnes per annum.
Dangote‘s publicly traded cement manufacturer, Dangote Cement, has a presence in 10 countries on the continent. Its Ethiopia operations faced headwinds upon launch in 2015 including a 2018 incident that saw the country manager and two employees killed.
The International Monetary Fund (IMF) projects Ethiopia’s GDP will grow by 6.5% this year. After launching its stock exchange in January and opening its market to foreign banks, the country is expected to experience a boom in private sector activity.
