Aliko Dangote, Africa’s richest man, has announced a $400 million plan to revive a second production line at the Mugher cement plant in Ethiopia.
- Aliko Dangote plans to invest $400 million to revive a second production line at the Mugher cement plant in Ethiopia
- The Mugher plant has faced challenges, including regional violence and the tragic loss of company staff in 2018
- The expansion in Ethiopia aims to increase annual cement production capacity to 55 million tons
The Mugher cement plant in Ethiopia is one of the Dangote cement factories which is currently operational in 10 African countries.
In 2015, the Dangote group expanded the Mugher cement plant with a $19 million bagging plant, capable of producing 120 million bags per year.
The Mugher plant, which began operations in 2015 with a 2.5 Mt/yr capacity, has faced challenges.
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Recurrent violence in the region led to vandalism of vehicles and machinery by protesters. Tragically, the country manager of Dangote Cement Plc and two staff members were shot dead in 2018.
Dangote’s strategic interest in Ethiopia
Aliko Dangote, Chairman and CEO of Dangote Group, moved to expand the company’s presence in Ethiopia, further solidifying its position as Africa’s leading cement producer with an annual production capacity of 55 million tons.
Dr. Brook Taye, CEO of Ethiopian Investment Holdings, welcomed the expansion, emphasizing Ethiopia’s commitment to fostering private-sector growth:
“Ethiopia is undergoing a significant economic transformation that prioritizes industrialization, 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.”
The capacity of the Dangote Mugher cement plant will be increased from 2.5 million to 5 million tons per annum with the addition of a new greenfield grinding unit near Addis Ababa.
Beyond cement, Dangote Group is also expanding into Ethiopia’s sugar industry by enhancing operations at Omo Kuraz Sugar Company, leveraging its experience in Nigeria.
The company is further considering the establishment of a urea production plant, contingent on Ethiopia’s natural gas development, to support agricultural productivity.
Praising Ethiopia’s improving investment climate, Dangote described the country as his best investment destination.
Mr. Dangote further highlighted the crucial role of African business leaders in driving the continent’s development, stating:
“Africa will be developed by Africans. 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.”
