By William Davison
(Bloomberg) — Dangote Group plans to double capacity by
2017 at its newly opened cement plant in Ethiopia as it seeks
growth from the construction boom in Africa, Chairman Aliko
Dangote.
Dangote Cement Plc will spend $500 million to raise
capacity at the plant in Mugher, west of Ethiopia’s capital,
Addis Ababa, to 5 million metric tons a year, on top of the $600
million it invested in the first phase, Dangote said on Thursday
at the opening. Development of the second stage will start
almost immediately and take 26 months to complete, he said.
“This is in line with our long-term vision to be one of
the largest cement producers in the world,” said Dangote.
Dangote Cement, Africa’s biggest producer, is investing in
16 countries on the continent to tap demand for building
materials as governments invest in infrastructure, said Dangote.
With one of the fastest economic growth rates in the world, the
region is attracting foreign investment to construct roads,
railways, airports and power plants.
Ethiopia is endowed with raw materials for cement
production and the government made extra concessions for the
investment, Dangote said. While Addis Ababa suffers from
frequent power outages, generators weren’t even installed at the
Mugher plant due to the “reliability of power supply” from the
national grid at the site in the Oromia region, he said.
Dangote’s factory, built by Shanghai-based Sinoma
International Engineering, will employ 2,000 people and provide
another 5,000 jobs indirectly, the chairman said. The company
may step up its expansion in Ethiopia. It’s negotiating an
investment in a Ethiopian phosphate project, said Dangote.
Phosphate is used in products including fertilizer and
rechargeable batteries.
“We are working with the government and as soon as we have
a mineral license we will start,” he said.
“We’ve barely scratched the surface of the immense
potential for growth in this country,” Prime Minister
Hailemariam Desalegn said at the opening ceremony on Friday.