Dangote is investing $400 million to expand its cement operations in Ethiopia

Dangote Unveils $400M Expansion Plan for Ethiopian Cement Plant

YEPS
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Aliko Dangote

News gathered by YEPS News reveals that Aliko Dangote, Chairman and CEO of Dangote Industries Ltd., has announced a $400 million initiative to revive a second production line at Ethiopia’s Mugher cement plant. This strategic expansion is set to double the plant’s annual output to 5 million tonnes.

Originally launched in 2015, the facility has encountered security challenges over the years, including attacks on vehicles and equipment amid regional unrest. Reports first published by Bloomberg on Saturday indicate that such incidents have posed operational difficulties. Notably, in 2018, the Country Manager of Dangote Cement Plc, along with two employees, was tragically killed in Ethiopia.

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Speaking to reporters in Addis Ababa, Dangote highlighted the company’s resilience despite these challenges. “Through all the fluctuations, we have successfully repaid our loans and repatriated our earnings,” he stated. According to insights obtained by YEPS News, the newly planned expansion is expected to be completed within the next 30 months.

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Africa’s richest businessman also disclosed plans to construct a greenfield cement grinding unit with a production capacity of 3 million tonnes annually. This move aligns with the company’s broader ambition to strengthen its footprint in Africa’s construction sector.

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Furthermore, Dangote Industries is partnering with the state-owned Ethiopian Investment Holdings to invest in the Omo Kuraz sugar factory, a key player in Ethiopia’s agricultural and manufacturing landscape. This collaboration, as monitored by YEPS News, signals a broader commitment to industrial growth within the region.

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