Africa’s richest man, Aliko Dangote, has unveiled a $400 million expansion plan for his Mugher cement plant in Ethiopia. This investment will revive a second production line, effectively doubling the plant’s annual capacity to 5 million tons.
Challenges in Ethiopia’s Cement Sector
The Mugher cement plant, operational since 2015, has encountered several challenges. Recurring violence in the region has led to vandalism of company assets, including vehicles and machinery. Tragically, in 2018, the country manager of Dangote Cement Plc and two other employees were shot dead.
Despite these setbacks, Dangote Industries has cleared all its loans and successfully repatriated profits, according to Aliko Dangote. Speaking in Addis Ababa on Saturday, he expressed confidence in the expansion project, which is expected to be completed within 30 months.
New Cement Grinding Unit and Investment in Sugar Industry
Beyond cement, Dangote has announced plans for a new grinding unit, which will have a 3 million-ton annual capacity. This unit will further strengthen Ethiopia’s construction sector, ensuring a steady supply of cement for ongoing infrastructure projects.
Additionally, Dangote Industries has partnered with Ethiopian Investment Holdings, a state-owned entity, to invest in the Omo Kuraz sugar factory. This move aligns with Dangote’s strategy of diversifying investments while supporting Ethiopia’s industrial growth.
With these initiatives, Dangote Industries aims to bolster Ethiopia’s economy, generate employment opportunities, and enhance the country’s industrial output.
