Dangote Group to Invest $400 Million in Expanding Cement Plant in Ethiopia
The Chairman of the Dangote Group, Aliko Dangote, has announced a significant new investment of $400 million to expand the Mugher cement plant in Ethiopia. This expansion project aims to raise the plant’s capacity from 2.5 million to 5 million tons per year, demonstrating the group’s commitment to strengthening its presence in the Ethiopian market.
The Mugher cement plant, which commenced operations in 2015, has faced various challenges in recent years, including the vandalism of equipment and the tragic killing of three staff members. Despite these setbacks, the Dangote Group remains optimistic about the plant’s future prospects and is dedicated to overcoming the obstacles it has encountered.
Dr. Brook Taye, CEO of Ethiopian Investment Holdings (EIH), welcomed the news of Dangote Group’s investment as a positive development that reflects confidence in Ethiopia’s business environment. He emphasized the importance of such investments in driving economic growth and creating opportunities for local communities.
In addition to the cement plant expansion, Dangote Group is also exploring opportunities in other sectors in Ethiopia. The group plans to collaborate with EIH on investing in the Omo Kuraz Sugar Company and is considering the establishment of a urea production facility, contingent on the development of Ethiopia’s natural gas sector.
Speaking about the investment climate in Ethiopia, Aliko Dangote praised the country’s efforts to improve its business environment and attract foreign investment. He highlighted the role of African business leaders in driving economic progress and emphasized the need for collaboration between the private sector and government to achieve sustainable development.
This latest investment by the Dangote Group reaffirms its long-term commitment to Ethiopia and its belief in the country’s potential for growth and prosperity. By continuing to invest in key sectors and support local industries, the group aims to contribute to Ethiopia’s economic development and create opportunities for employment and skill development.
Source: Business Insider Africa
