Aliko Dangote, Africa’s richest man, has unveiled a $400 million expansion plan to revive a second production line at the Mugher cement plant in Ethiopia, aiming to double its annual capacity to 5 million metric tons.
Thank you for reading this post, don't forget to subscribe!The Mugher plant, which commenced operations in 2015, has faced significant challenges, including recurrent violence in the region. According to Bloomberg, attacks on the facility led to the vandalism of vehicles and machinery, and in 2018, the country manager of Dangote Cement Plc and two other staff members were tragically shot dead.
Despite these setbacks, Dangote confirmed that all loans have been repaid, and the company has successfully repatriated its profits. Speaking in Addis Ababa on Saturday, he announced that the expansion project is expected to be operational within the next 30 months.
New Greenfield Cement Grinding Plant Planned
Beyond expanding the Mugher facility, Dangote also revealed plans to establish a new greenfield cement grinding unit with a production capacity of 3 million metric tons per annum.
Diversifying Into Ethiopia’s Sugar Industry
In a strategic move to broaden its footprint in Ethiopia, Dangote Industries Ltd. will invest in the Omo Kuraz sugar factory in partnership with state-owned Ethiopian Investment Holdings. This signals a deeper commitment to Ethiopia’s industrial and agricultural sectors.
Dangote’s Expanding African Business Empire
Dangote’s investments extend beyond cement. His conglomerate, Dangote Group, operates in multiple sectors across Africa, including manufacturing, infrastructure, and agriculture, with a focus on reducing the continent’s dependence on imports.
• Cement Dominance: Dangote Cement is Africa’s largest cement producer, operating in over 10 countries, including Nigeria, Ethiopia, Tanzania, and South Africa, with a total production capacity exceeding 51 million metric tons per year.
• Refinery Ambition: The Dangote Refinery, located in Lagos, is Africa’s largest oil refinery and one of the world’s biggest single-train refineries, boasting a 650,000 barrels-per-day capacity. It aims to make Nigeria self-sufficient in fuel production and curb reliance on imports.
• Food & Agriculture: Dangote Sugar is among Africa’s largest sugar producers, supplying both households and industries such as beverage and food processing companies. The group also produces flour, pasta, and other essential food products, significantly contributing to Nigeria’s food security.
Growing Competition in Africa’s Cement Industry
Dangote’s latest investment in Ethiopia comes amid increasing competition in Africa’s cement sector. Competitors like BUA Cement are expanding operations, with BUA recently reducing cement prices and planning to grow its production capacity from 17 million to 20 million metric tons annually. In Nigeria, former President Muhammadu Buhari inaugurated BUA Cement’s plant in Sokoto, underscoring the importance of private sector investments in infrastructure development.
Dangote’s new ventures in Ethiopia reinforce his commitment to expanding Africa’s industrial base, enhancing self-sufficiency, and driving economic growth.
