Wealthiest Individual in Africa, Aliko Dangote, Expands Cement Production in Ethiopia with Major Investment

Aliko Dangote, Africa’s richest man, is set to expand his cement production capacity in Ethiopia by establishing a second production line at his existing factory. This expansion will double the plant’s output from 2.5 million to 5 million tonnes per year.

In addition to increasing cement production, Dangote’s conglomerate plans to build a new grinding unit near the Ethiopian capital with a capacity of 3 million tonnes annually, along with a Urea production plant. He has also expressed interest in Ethiopia’s sugar industry, including the potential enhancement of operations at the Omo Kuraz sugar company.

Dangote had initially considered pausing new investments across the continent after completing his oil refinery in Nigeria, which is expected to process 650,000 barrels of oil per day. However, he described the company’s existing 2.5-million-tonne cement plant in Mugher as a standout asset within his portfolio. While acknowledging challenges, he stated that he was highly satisfied with the investment and confirmed that the company had successfully repatriated 100% of its loans and dividends.

Dangote Group has been increasing its presence in Ethiopia as the country undergoes economic liberalization, creating new opportunities for foreign investors. Brook Taye, CEO of Ethiopian Investment Holdings, described Dangote’s expansion as a strong endorsement of Ethiopia’s business climate, emphasizing its expected contribution to infrastructure and economic growth.

With this investment, Dangote is solidifying his status as one of Africa’s leading cement producers, increasing his total production capacity across the continent to 55 million tonnes per year. His publicly traded company, Dangote Cement, currently operates in 10 African countries. However, its Ethiopia operations have faced challenges since launching in 2015, including a 2018 security incident in which the country manager and two employees were killed.

Ethiopia’s economic outlook remains strong, with the International Monetary Fund (IMF) projecting GDP growth of 6.5% this year. Following the launch of its stock exchange in January and the recent opening of its banking sector to foreign institutions, the country is expected to see significant private sector expansion. However, key challenges persist, including political risks and fiscal and monetary policy concerns, which continue to shape the nation’s investment landscape.

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