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Promoting intra-African trade through cement investments

By FEMI ADEKOYA
14 October 2015   |   12:20 am
Thabo Mbeki in his address to Nigerian manufacturers said: “Sustainable economic growth and social development constitute the primary goals of economic policy in Africa.

Cement-plantUnderlying the need for Nigeria to play its role in leading the continent to achieve its renaissance, former President of South Africa, Dr. Thabo Mbeki at the yearly general meeting of the Manufacturers Association of Nigeria (MAN) charged the Federal Government and Nigerian Manufacturers to take the lead in addressing the long years of under-development. Aliko Dangote, while speaking at the commissioning of his cement plant in Mtwara District in Tanzania, said his pan-African drive is set to address these challenges. FEMI ADEKOYA writes.

Thabo Mbeki in his address to Nigerian manufacturers said: “Sustainable economic growth and social development constitute the primary goals of economic policy in Africa. It is expected that solid advances towards these goals will not only result in rising living standards across the continent but will also lead to full employment of resources as well as reduced income inequality and poverty.

I would like to draw attention to an important reality – the reality that Nigeria has an obligation it cannot escape, the obligation to play an historic role in terms of helping to lead our Continent to realise its dream, the dream of achieving its renaissance.

When we speak of an African renaissance we mean the birth of an Africa that would have overcome a centuries-long negative legacy we have inherited from the extended period covering the years of the violent export of Africans as slaves, the years of colonialism and neo-colonialism. One tragic consequence of this legacy is the reality we live with everyday – the reality of millions of Africans living in poverty and in conditions of underdevelopment.

Corroborating these views, Aliko Dangote noted that as a growing continent, the developmental challenges of Africa are quite enormous and require concerted efforts to overcome them.
According to him, spearheading the realisation of African renaissance involves private companies complementing governments’ efforts, adding that it is in this light that his cement company is contributing its quota to transform the Tanzanian economy.

He said: “While we take pride in the fact that an African company is making this investment in a sister African country, we are even more excited that the concept of regional integration which our founding fathers had envisioned long ago, has now taken firm roots in the continent. This indeed, shows that Africa is gradually taking her destiny in her own hands rather than wait for investors from outside Africa.
“Investment in the real sector of the economy is the only way that our continent can achieve accelerated growth and development that we have yearned for in order to liberate our people from the shackles of poverty”.

Tanzanian President, Dr. Jakaya, Mrisho Kikwete said there was no better way of rejuvenating and sustaining a nation’s economy if not through investment sustain which opens the door of for job creation and opportunity for people to express their creative abilities.

He described the 3m mtpa cement plant as the largest cement plant in the eastern and Central Africa, noting that the investment is a huge one that would have a huge impact as well as bilateral relation between Tanzania and Nigeria.
“It will go a long way in transforming our happily existing diplomatic and political relations into investment and trade arena”, he noted.
Dr. Kikwete pointed that the cement plant came at a time when the demand for cement is on the upsurge and increasing both locally and regionally.
He added: “It is logical that there is a sound relationship between economic growth and booming of the construction sector whereby cement is a critical input. Tanzania is one of the countries where such relationship can easily be traced.”
On his own part, President Mohammadu Buhari who was represented by the Kaduna State governor, Mallam Nasir El-Rufai said Dangote is a key role player in the economic development of Africa and this his investment model is in tandem with the unfolding economic policy of his government.
He said Dangote by his investment is teaching Africa nations on the need to adopt an economic integration policy, which will encourage Africans to invest in their continent, rather than waiting endlessly for the elusive foreigners to come and help invest and develop Africa.
“The construction sector is a major emergent component of the Tanzanian economy that has been receiving the attention of investors. This makes it an ideal market for cement production. The existing cement manufacturers have historically been unable to satisfy local demand, which has been filled by imports. As essential economy-driven infrastructure continues to be built to improve electricity supply and the transport network, additional demand for cement can be expected.

The Dangote Cement investment will certainly contribute to Tanzania’s on-going story of infrastructure development, job creation, and broad economic development. Our strategy is to invest in countries that offer investors attractive returns on investment as well as provide them with an enabling environment to operate.

It is our sincere belief that our $600million investment in Tanzania will further speed up infrastructural development and complement the government’s efforts in stimulating economic growth and creating jobs for the people. When in full production, this plant will make Tanzania self-sufficient in cement, with a lot of cement for export to neighbouring countries”, Dangote added.

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