Dangote Cement stakes $600m on Tanzanian plant
With its cement plants across African countries undergoing expansion as well as the initiation of new investments in Asia, Dangote Cement Plc has unveiled plans to attain a production capacity of 81 million tonnes before 2020, as it commissions its $600 million plant in Tanzania.
Indeed, the President of Dangote Group, Aliko Dangote, explained that the company is currently consolidating its cement businesses across Africa to reap the benefits of scale, adding that its operational offshore cement plants have started to make substantial contributions to our group revenue.
Dangote, added that the company’s Pan-African drive will aid the cement company’s plan to do a listing in London and Johannesburg in the near future, with an intention to consolidate the cement assets into one company that will have the scale and resources to compete globally.
Speaking at the commissioning of Tanzanian cement plant in Mtwara, Dangote explained the choice of Tanzania for investment, stating that the existing supply gap has been inadequate in meeting local demands, while noting the need to boost export supply in the eastern Africa regional bloc.
“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.
Representative of the Federal Government and Governor of Kaduna State, Nasir el-Rufai, commended Dangote’s Cement construction across Africa, noting that only Africa can develop Africa, while urging other investors to emulate Dangote by spreading their investments across the continent.
“Africa needs to take its place in the comity of nations. We need to emulate Dangote in promoting the African Renaissance. Africa holds great future if other investors emulate Dangote. Africa has been receiving a lot of attention from investors as a result of the return on investments and growth opportunities in the continent. We cannot afford to lose out of these opportunities”, he added.
He then urged African governments to encourage investment promotion as a supporting economic growth and agenda, adding that Africa has all it takes to build a great continent by mobilizing human and natural resources.
President of the United Republic of Tanzania, Dr. Jakaya Mrisho
Kikwete lauded Dangote on his pan-African investment drive, while expressing his continuous support for the company in driving sustainable growth.
Dangote while expressing his gratitude to President Kikwete for his support, said: “A key factor that drives investments in an economy is the presence of an investor-friendly business climate.
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