Aliko Dangote plans a $400 million investment to revive a second production line at the Mugher cement plant in Ethiopia, doubling its output to 5 million tons. The project will also create a new grinding unit with a capacity of 3 million tons. Despite past challenges, Dangote has successfully managed company performance and aims to strengthen Africa’s manufacturing sector.
Aliko Dangote, Africa’s richest individual, has unveiled a $400 million plan to reactivate a second production line at the Mugher cement plant in Ethiopia, intending to double its annual output to 5 million tons. The facility, operational since 2015, has encountered multiple obstacles, including violence and protests that led to equipment vandalism and tragic incidents, including the deaths of company personnel in 2018.
Despite these challenges, Dangote stated that the company has successfully repaid all loans and repatriated profits. He expressed optimism about the expansion project, which is anticipated to become operational within the next 30 months. Additionally, the project involves setting up a new greenfield cement grinding unit with a capacity of 3 million tons per year.
In conjunction with Ethiopian Investment Holdings, Dangote Industries plans to invest in the Omo Kuraz sugar factory, further diversifying its operations. The Dangote Group, run by Dangote, has built a significant business presence across various sectors in Africa, focusing on manufacturing, infrastructure, and agriculture while reducing reliance on imports.
Dangote Cement stands as Africa’s largest cement manufacturer, operating in over ten countries including Nigeria and Ethiopia, with a production capacity exceeding 51 million metric tons annually. This capability significantly contributes to reducing the continent’s dependency on imported cement.
Furthermore, Dangote’s ventures include the Dangote Refinery in Lagos, recognized as Africa’s largest oil refinery, possessing a refining capacity of 650,000 barrels per day. This mega-project aims at achieving fuel self-sufficiency for Nigeria and minimizing fuel imports. Dangote Sugar, another major initiative, serves the household and industrial markets, thus reinforcing Nigeria’s food security through its production of sugar, flour, pasta, and other food products.
Dangote’s $400 million investment reflects his commitment to expanding cement production in Ethiopia, despite past challenges. The initiative aims to increase production capacity significantly and includes advancing into the sugar production sector. His endeavors enhance Africa’s industrial capabilities and reduce dependency on imports. With multiple successful operations across sectors, Dangote continues to play a pivotal role in fostering economic growth in Africa.
Original Source: www.marketscreener.com
