Roland Iwuchukwu
Aliko Dangote has announced 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.
The capacity of Dangote Mugher cement plant will be increased from 2.5 million to 5 million tons per annum
Aliko Dangote, Chairman and CEO of Dangote Group, is set 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.
The Chief Executive Officer (CEO) of Ethiopian Investment Holdings, Dr. Brook Taye, 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.
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