Dangote Group to Double Cement Production in Ethiopia, Expand into New Sectors

Aliko Dangote, Chairman and CEO of Dangote Group, has announced ambitious expansion plans in Ethiopia, including doubling the company’s cement production capacity and investing in new industries.

Speaking to journalists, Dangote revealed that the company will increase the capacity of its Mugher cement plant from 2.5 million to 5 million tons per year. This expansion will be driven by the establishment of a new greenfield grinding unit near Addis Ababa.

Investment in Ethiopia’s Sugar Industry

Beyond cement, the Dangote Group is setting its sights on Ethiopia’s sugar industry. Leveraging its experience in developing a 60,000-hectare sugar plantation in Nigeria, the company plans to enhance operations at Ethiopia’s Omo Kuraz Sugar Company.

Looking ahead, Dangote also hinted at future investments in Ethiopia’s agricultural sector. Once the nation’s natural gas reserves are developed, the group will consider establishing a urea production plant to support agricultural productivity.

Commitment to Ethiopia’s Investment Climate

Dangote praised Ethiopia’s improving investment climate and reaffirmed his enthusiasm for doing business in the country.

“Ethiopia remains our best investment destination,” he said.

He also underscored the critical role of African business leaders in driving the continent’s development.

“Africa will be developed by Africans. Our political leaders must strengthen the African Union, and we, as business leaders, must complement their efforts by deepening commercial linkages across the continent,” Dangote stated.

Government Support for Private Sector Growth

Brook Taye, CEO of Ethiopian Investment Holdings, echoed these sentiments, highlighting Ethiopia’s commitment to fostering private sector growth.

“The Government of Ethiopia is pleased to see Dangote Group expanding its footprint in the country,” Taye said. “Ethiopia is undergoing an economic transformation that prioritizes industrialization, investment, and job creation.”

Impact on Ethiopia’s Economy

Dangote Group’s expansion signals strong confidence in Ethiopia’s business environment. The company’s increased investment in cement, sugar, and fertilizer production is expected to drive infrastructure growth, create jobs, and boost agricultural productivity – solidifying Dangote Group’s position as Africa’s leading cement producer while contributing significantly to Ethiopia’s economic development.