Africa’s richest man, Aliko Dangote, plans a $400 million expansion of the Mugher cement plant in Ethiopia to increase its capacity to 5 million tons. The plant has faced regional violence and challenges but has successfully managed its financial obligations. The expansion is expected to be operational in 30 months, alongside a new cement grinding unit and an investment in the Omo Kuraz sugar factory.
Aliko Dangote, Africa’s wealthiest individual, announced a significant $400 million initiative to revitalize the second production line at the Mugher cement facility in Ethiopia. This expansion aims to double the plant’s annual production capacity from 2.5 million tons to 5 million tons. The Mugher plant, which commenced operations in 2015, has encountered troubles due to regional unrest, which included attacks on vehicles and machinery. Tragically, in 2018, the country manager and two staff members were killed during such violence.
Despite these challenges, Dangote highlighted the operational resilience of Dangote Cement Plc, stating that they have successfully repaid all loans and repatriated profits. At a press conference held in Addis Ababa, he expressed optimism about the expansion project, projecting it will become operational within the next 30 months. Additionally, Dangote revealed plans to set up a new greenfield cement grinding unit with a capacity of 3 million tons per year.
In collaboration with Ethiopian Investment Holdings, Dangote Industries is set to invest also in the Omo Kuraz sugar factory, broadening their investment influence in the region. This diversification demonstrates Dangote’s commitment to deepening investments in Ethiopia, highlighting the growth opportunities despite the risks involved in the business landscape.
In summary, Aliko Dangote is set to invest $400 million in expanding the Mugher cement plant’s capacity to enhance production and efficiency, indicative of his confidence in Ethiopia’s market potential. Despite past adversities, including violence and loss of staff, Dangote’s successful financial management positions the company well for future growth through both cement and sugar production ventures.
Original Source: businessday.ng
