Aliko Dangote announces major expansion and new investments in Ethiopia

|Published 2:22 PM ET, Sunday February 16, 2025|

Addis Ababa, Ethiopia: Aliko Dangote, Africa’s richest man and Chairman of Dangote Group, has announced a significant expansion of the company’s operations in Ethiopia. This strategic move underscores Ethiopia’s growing appeal as a prime investment destination in Africa.

Doubling Cement Production Capacity

The Dangote Mugher cement plant, operational since 2015 with an initial capacity of 2.5 million tons annually, is set to double its output to 5 million tons per annum. This will be achieved through the addition of a second production line and the establishment of a new greenfield grinding unit near Addis Ababa. This $400 million investment aims to meet the increasing demand for cement in the region and bolster Ethiopia’s infrastructure development.

Diversification into the Sugar Industry

Beyond cement, Dangote Group is diversifying its investments by entering Ethiopia’s sugar industry. Leveraging its experience from developing a 60,000-hectare sugar plantation in Nigeria, the company plans to enhance operations at Ethiopia’s Omo Kuraz Sugar Company. This initiative aligns with Ethiopia’s economic transformation goals, focusing on industrialization and job creation.

Future Prospects in Fertilizer Production

Looking ahead, Dangote Group is considering the establishment of a urea production plant in Ethiopia. This venture is contingent upon the development of the country’s natural gas reserves and aims to boost agricultural productivity by providing essential fertilizers to local farmers.

Commitment to African Development

Aliko Dangote emphasized the pivotal role of African business leaders in driving the continent’s progress, stating, “Africa will be developed by Africans.” He highlighted the importance of complementing political efforts with robust commercial linkages across Africa. This expansion not only solidifies Dangote Group’s position as Africa’s leading cement producer but also contributes significantly to Ethiopia’s economic growth and industrial development.

These strategic investments reflect a forward-thinking approach, positioning Ethiopia as a regional hub for industrial investment and underscoring the potential for sustainable economic growth through diversified industrial activities.