Aliko Dangote, Africa’s richest man, announced a $400 million plan to revive a second production line at the Mugher cement plant in Ethiopia, aiming to double the facility’s annual capacity to 5 million tons.
The Ethiopian plant that became operational in 2015 has faced challenges, including recurrent violence in the region, which has led to the vandalism of vehicles and machinery by protesters.
Loss Making Pan-Africa Operations
The plant operates under the Pan-Africa segment of Dangote Cement operations which reported a wider loss after-tax of N207.93 billion as at September, 2024, compared to a loss of N54.346 billion as at September 2023.
“Despite the ups and downs, we have successfully repaid all our loans and repatriated our profit,” the Dangote Industries Ltd. chairman and chief executive officer told reporters on Saturday in the Ethiopian capital, Addis Ababa.
The expansion project is expected to be operational within the next 30 months, he said.
Currency Swap
Dangote Cement and Ethiopian Airlines in 2023 entered into a currency swap of $100m from revenue funds trapped in Nigeria and Ethiopia.
Sources in the aviation industry revealed that Ethiopian Airlines exchanged $100 million out of the total $180 million in blocked funds in Nigeria for Ethiopian birr from Dangote Cement, Ethiopia
Dangote also announced plans to establish a new greenfield cement grinding unit with a capacity of 3 million tons per annum. In collaboration with state-owned Ethiopian Investment Holdings, Dangote Industries will invest in the Omo Kuraz sugar factory, he said.
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