Aliko Dangote, Africa’s wealthiest businessman, has announced a $400 million investment to revitalise and expand the Mugher cement plant in Ethiopia. This move is set to double the plant’s annual production capacity and further solidify Dangote Cement’s footprint across Africa.
Strengthening Ethiopia’s industrial growth
The Mugher cement plant, operational since 2015, has faced multiple challenges, including regional violence and infrastructure setbacks. Despite these hurdles, Dangote Cement remains committed to Ethiopia, where the company already operates one of its 10 cement plants across Africa.
The new investment will increase Mugher’s production capacity from 2.5 million to 5 million tons per year. Additionally, a new greenfield grinding unit will be developed near Addis Ababa to support the expansion.
Ethiopia’s government welcomed the project, with Dr. Brook Taye, CEO of Ethiopian Investment Holdings, stating: ‘Ethiopia is undergoing a significant economic transformation that prioritises industrialisation, investment, and job creation. This investment signals strong confidence in Ethiopia’s business environment.’
Dangote’s expanding vision beyond cement
Beyond cement production, Dangote Group is also eyeing Ethiopia’s sugar and fertiliser industries. The company plans to enhance operations at Omo Kuraz Sugar Company and is exploring opportunities for a urea production plant, contingent on the country’s natural gas development.
Aliko Dangote emphasised his confidence in Ethiopia’s investment climate, calling it his ‘best investment destination’ in Africa. He also underscored the importance of African-led development, stating:
‘Africa will be developed by Africans. As political leaders strengthen the African Union, business leaders must complement these efforts by deepening commercial linkages.’
With this significant investment, Dangote Cement is not only expanding its industrial footprint in Ethiopia but also contributing to the country’s broader economic transformation and job creation.
