Aliko Dangote, Africa’s richest man and Chairman of the Dangote Group, has announced a $400 million expansion of the Mugher cement plant in Ethiopia.
This development aligns with Dangote Cement’s broader strategy of increasing its total production capacity across Africa to 55 million tons annually.
This investment will introduce a second production line, effectively doubling the plant’s annual capacity from 2.5 million to 5 million tons. The expansion will include the construction of a new greenfield grinding unit near Addis Ababa.
The Mugher plant, which began operations in 2015, has faced significant challenges, including security threats and regional unrest. In 2018, an attack resulted in the deaths of the manager and two employees. Despite these setbacks, Dangote views Ethiopia as a key market in his expanding cement business.
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Dangote previously invested $19 million in 2015 to establish a bagging plant at the Mugher facility, enabling the production of 120 million cement bags per year. He has praised Ethiopia’s business climate, calling it his “best investment destination.”
Dangote emphasized that Africa’s development must be driven by Africans, stating, “As political leaders work to strengthen the African Union, business leaders must support these efforts by deepening trade across the continent.”
Dr. Brook Taye, CEO of Ethiopian Investment Holdings, welcomed the investment, highlighting its role in boosting industrialization, job creation, and economic growth. He described it as a strong vote of confidence in Ethiopia’s investment environment.
Dangote’s investments in Ethiopia go beyond cement. The group is also expanding into the sugar industry, improving operations at the Omo Kuraz Sugar Company. Additionally, it is considering a urea production plant, depending on Ethiopia’s natural gas development. With a net worth of $28 billion, Dangote’s expansion into Ethiopia marks another milestone in Africa’s industrial growth and economic integration.
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