The richest man in Africa, Aliko Dangote, will set up a second production line at his cement factory in Ethiopia – increasing its capacity to 5 million tonnes per annum, up from 2.5 million tonnes currently.
- In addition, the Nigerian billionaire’s conglomerate will set up a new grinding unit near the Ethiopian capital, with a capacity of 3 million tonnes per annum and a Urea production plant.
- Dangote is also interested in Ethiopia’s sugar industry, including enhancing operations at the Omo Kuraz sugar company.
- He had initially sought to pause new investments in the continent after completing his oil refinery in Nigeria which is set to refine 650,000 barrels of oil per day.
“Our 2.5 million tons cement plant in Mugher remains one of the jewels of our portfolio. While we have experienced ups and downs, I am very pleased with this investment, and I am pleased to announce that we have successfully repatriated 100% of the loans and 100% of our dividends,” Dangote said.
Dangote Group has been on an investment push in the country as it undergoes its economic liberalisation push, opening up multiple sectors to outside investors.
“This investment is a strong signal of confidence in Ethiopia’s business environment and will contribute significantly to our infrastructure and economic growth,” Brook Taye, CEO of the Ethiopian Investment Holdings, said on Saturday.
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. The most significant barriers to the Ethiopia’s business environment is its elevated political risks, and its fiscal and monetary policies.
