Africa’s richest man, Aliko Dangote, is doubling down on Ethiopia’s cement industry with a $400 million expansion of his Mugher cement plant. The investment will double the plant’s production capacity to 5 million tons per year**, strengthening Dangote Cement’s footprint in one of Africa’s fastest-growing markets.
The Mugher facility, which launched in 2015 with an initial capacity of 2.5 million tons annually, has faced significant challenges, including regional unrest. In 2018, an attack on company property led to the **death of Dangote Cement’s country manager and two employees**. Despite this, Dangote remains committed to Ethiopia, citing its **economic potential and improving investment climate.
Doubling Capacity to Meet Demand
The expansion will include a new greenfield grinding unit near Addis Ababa, which will boost production and strengthen Ethiopia’s cement supply chain. The Dangote Group had previously invested $19 million in a bagging plant at Mugher, enabling it to produce **120 million cement bags annually.
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Speaking on the expansion, Dangote emphasized the role of African businesses in shaping the continent’s future. **“Africa will be developed by Africans. 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,” he said.
Ethiopia’s Industrial Push
Dr. **Brook Taye**, CEO of Ethiopian Investment Holdings, welcomed the investment, saying it reflects the country’s commitment to industrial growth. **“Ethiopia is undergoing a significant economic transformation, prioritizing industrialization and job creation. This investment is a strong vote of confidence in our business environment,”** he stated.
Beyond cement, Dangote is also exploring Ethiopia’s sugar industry through the Omo Kuraz Sugar Company. leveraging expertise gained in Nigeria.
Additionally, the company is considering a urea production plant, contingent on Ethiopia’s natural gas development, to support agricultural productivity.
Dangote’s Expanding Empire
Dangote Cement, which operates in 10 African countries, aims to increase its total annual production capacity to 55 million tons across the continent. The Ethiopian expansion comes as part of that broader vision.
With an estimated net worth of $28 billion, Dangote remains Africa’s wealthiest individual, according to the Bloomberg Billionaires Index. His company’s continued expansion into Ethiopia underscores its long-term commitment to Africa’s industrialization, even in the face of past security challenges.
