When Aliko Dangote first launched his cement plant in Ethiopia in 2015, it was meant to be a game-changer for the country’s construction sector.
However, the journey has been anything but smooth.
Now, Aliko Dangote, Africa’s richest man, is stepping in with a $400 million expansion of his Mugher cement plant.
For nearly a decade, the Mugher cement plant has been a key part of Ethiopia’s construction landscape.
Dangote Cement opened the facility in 2015 to transform the industry, but its journey has been far from easy.
However, the plant has faced recurring violence in the region, with attacks on company assets and even the tragic killing of three employees in 2018.
A Bold New Investment
Despite these challenges, Dangote Industries has remained committed to Ethiopia.
On Saturday, the company’s chairman, Aliko Dangote, announced a bold new investment plan in Addis Ababa.
With a $400 million expansion, the company aims to revive a second production line at the Mugher plant, doubling its annual capacity to 5 million tonnes.
The project is expected to be completed within the next 30 months.
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Growing Demand For Cement
This expansion comes at a crucial time for Ethiopia’s growing demand for cement, as urbanisation and infrastructure projects continue to rise.
Alongside the expansion, Dangote Cement is also planning to build a new greenfield cement grinding unit with a capacity of 3 million tonnes per year.
Beyond Cement
Beyond cement, Dangote Industries is looking to deepen its footprint in Ethiopia’s economy.
In collaboration with state-owned Ethiopian Investment Holdings, the company will invest in the Omo Kuraz sugar factory, bringing much-needed development to the sugar sector.
A Long-Term Commitment
With these investments, Dangote Industries is reinforcing its long-term commitment to Ethiopia.
Despite past difficulties, the company sees strong potential in the country’s industrial growth, positioning itself as a key player in Ethiopia’s economic future.
