Dangote Group, Africa’s leading industrial conglomerate, and Ethiopian Investment Holdings (EIH) have announced a significant expansion of Dangote’s presence in Ethiopia, reinforcing the country’s attractiveness as a premier investment destination in Africa.
Speaking on the new investment, Aliko Dangote, Chairman and CEO of Dangote Group, stated: “I am always happy to come to Ethiopia. I was particularly inspired by the discussions I had with His Excellency, the Prime Minister, during my most recent visit and by the visible development taking place in the country. Our 2.5 million tons cement plant in Mugher remains one of the jewels of our portfolio. While we have experienced ups and downs, I am very pleased with this investment, and I am pleased to announce that we have successfully repatriated 100% of the loans and 100% of our dividends.”
After successfully commissioning the Dangote Refinery, one of the largest industrial projects in Africa, Mr. Dangote had initially planned to pause major new investments. However, he revealed that Ethiopia’s improving investment climate and his meeting with the Prime Minister had changed his perspective. As a result, Dangote Group is set to double its cement production capacity in Ethiopia.
Dr. Brook Taye, CEO of Ethiopian Investment Holdings, welcomed the expansion and highlighted Ethiopia’s commitment to fostering private sector growth: “Ethiopia is undergoing an economic transformation that prioritizes industrialization, investment, and job creation. We are pleased to see Dangote Group expanding its footprint in our country. This investment is a strong signal of confidence in Ethiopia’s business environment and will contribute significantly to our infrastructure and economic growth.”
He announced a new second production line at the Dangote Mugher cement plant, increasing capacity to 5 million tons per annum (MTPA), and a new greenfield grinding unit with a capacity of 3.0 MTPA, strategically located near Addis Ababa.
He expressed interest for new investments in Ethiopia’s sugar industry, leveraging Dangote’s experience in developing a 60,000-hectare sugar plantation in Nigeria to expand and enhance operations at the Omo Kuraz sugar company in Ethiopia. Dangote also highlighted future consideration of a Urea production plant in Ethiopia once the country’s natural gas reserves are developed, helping to boost agricultural productivity.
Mr. Dangote emphasized the 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 our commercial linkages across the continent.”
These investments further solidify Dangote Group’s position as Africa’s leading cement producer, increasing its total capacity to 55 million tons per annum across the continent. The expansion into Ethiopia’s sugar and fertilizer industries is also expected to have a significant economic impact, supporting job creation, agricultural productivity, and industrial development.
With Dangote Group’s expanded commitment, Ethiopia continues to position itself as a regional hub for industrial investment and a key player in Africa’s economic renaissance, the Investment Holdings said.
Source: FMC
