Dangote Plans $100m Cement Plant in Cameroon
Alhaji Aliko Dangote
Dangote Grouphas announced plans to invest over $100 million (about N15billion) in new cement manufacturing factory in Cameroon.
The company and Cameroonian authorities, according to a statement made available to THISDAY, have reached agreement on the investment.
President of Dangote Group, Alhaji Aliko Dangote was quoted to have said Dangote has reached agreement with all stakeholders to the project and that if the cement business succeeds, the Group will move into other domains of the Cameroonian industry.
The move, according to Dangote Group, is to ensure that African remains self-sufficient in cement production and making the products easily available and at highly affordable costs to the end users.
Cameroonhas only one cement producing company, CIMENCAM, which has annual output of about a million tonnes from two plants. Dangote stated that its planned cement plant, when operational, will increase the volume of cement produced in that country as well as drive down prices.
The planned investment in Cameroun, Dangote added, is coming on the heels of the Investment, Promotion and Protection Agreement between Dangote Industries Limited (DIL) and the Government of Zambia. The agreement marked a significant milestone in Dangote's quest to establish a cement plant in that country. The value of the investment is estimated at $400 million (N60 billion).
The Investment Promotion and Protection Agreement is requirement for all major investors in Zambia, which offers them additional incentives and safeguards their investments in case of changes in legislation.
Dangote expressed delight that negotiations between both parties over the proposed investment had finally yielded fruits with the signing of the agreement.
The Dangote Group Presidentsaid the proposed cement plant in Zambia with an installed capacity of 1.5 million metric tonnesper annum, will be up and running 27 months from February and March 2011.
He said the choice of Dangote Industries Limited in Zambia for the multi-million dollar investment is quite strategic, noting that the World Bank had in 2010 named Zambia as one of the world's fastest economically reforming countries.
Zambia, he recalled, is also rated as one of the most highly urbanised countries in sub-Saharan Africa with 44 per cent of the population concentrated in a few urban areas.
He said the high level of urbanisation poses a challenge to the government in terms of how to provide adequate infrastructure for the people.
Citing a report by the McKinsey Global Institute issued in June 2010, which stated that Africa would require at least $46 billion in spending annually to meet infrastructural needs, Dangote said it has become quite obvious that African governments alone cannot hope to meet this demand.