Dangote mulls $400m investment to expand Ethiopia Cement plant to 5m tonnes

President of Dangote Industries, Alhaji Aliko Dangote, has announced a $400 million investment plan to push a second production line at the Mugher cement plant in Ethiopia.

The plan, according to reports, is expected to double the facility’s annual output to 5 million tonnes.

The Mugher plant began operations in 2015 with an initial capacity of 2.5 million tonnes per year and it has been hit by several challenges including regional unrest in the company.

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In 2018, the country manager and two employees were killed in an attack.

Despite the challenges, Dangote told newsmen over the weekend in Ethiopia that he remains committed to Ethiopia, saying Ethiopia is the best investment destination in Africa.

He said the challenges notwithstanding, his commitment was borne out of patriotism to industrialise the continent by supporting the political leaders.

“Despite the ups and downs, we have successfully repaid all our loans and repatriated our profit,” he said.

He added, “As our political leaders work to strengthen the African Union, we as business leaders must complement their efforts by deepening commercial linkages across the continent.”

Daily Trust reports that the Mugher plant is a key part of the company’s strategy to increase its annual cement production capacity across the continent to 55 million tonnes. In 2015, the Dangote Group invested $19 million to add a bagging plant at the Mugher facility to facilitate the production of 120 million bags of cement annually.

The latest expansion will include a new greenfield grinding unit near Addis Ababa, boosting the plant’s capacity to 5 million tonnes per year. CEO of Ethiopian Investment Holdings, Dr Brook Taye, lauded the proposed investment, highlighting Ethiopia’s focus on industrialisation and private-sector growth.

“Ethiopia is undergoing a significant economic transformation that prioritises industrialisation, investment, and job creation. This investment is a strong signal of confidence in Ethiopia’s business environment and will significantly contribute to our infrastructure and economic growth,” he said