Africa’s richest man, Aliko Dangote, has unveiled a $400 million expansion plan for the Mugher cement plant in Ethiopia, aiming to double production capacity from 2.5 million to 5 million tons per year. This move reinforces Dangote Cement’s dominance in Africa’s construction industry, despite previous security challenges in the region.
Dangote’s Commitment to Ethiopia
The Mugher plant, operational since 2015, has faced significant unrest, including attacks on company assets and the tragic killing of the country manager in 2018. However, Dangote remains committed, calling Ethiopia his “best investment destination” due to its improving business climate.
“Africa will be developed by Africans,” Dangote stated. “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.”
What We Know About the Expansion
•The $400 million investment will fund a new grinding unit near Addis Ababa, increasing the Mugher plant’s capacity to 5 million tons per year.
•Dangote Cement operates in 10 African countries and aims to expand its annual production capacity to 55 million tons across the continent.
•In 2015, Dangote Group invested $19 million in a bagging plant at the Mugher facility, boosting cement packaging to 120 million bags annually.
•Beyond cement, Dangote is also investing in Ethiopia’s sugar industry, leveraging expertise from his Nigerian operations.
Dangote’s Vision for Industrial Growth in Africa
Dr. Brook Taye, CEO of Ethiopian Investment Holdings, praised the expansion, stating:
“Ethiopia is undergoing a significant economic transformation that prioritizes industrialization, investment, and job creation. This investment signals strong confidence in Ethiopia’s business environment.”
Dangote’s expansion in Ethiopia aligns with his broader African industrial ambitions, which include cement, sugar, fertilizer, and energy investments. The company is also considering a urea production plant, contingent on Ethiopia’s natural gas development, to support agricultural productivity.
Dangote’s Net Worth & Global Influence
As of today, Aliko Dangote is worth $28 billion, according to the Bloomberg Billionaire Index. His continued investments cement his status as Africa’s most influential business magnate, driving economic growth across the continent.
With expanding cement production, growing investments in agriculture, and a strong presence in multiple industries, Dangote remains at the forefront of Africa’s economic transformation.
