DANGOTE TO LAUNCH 5 NEW CEMENT PLANTS IN 2014

Five cement plants will be completed across Africa by the Dangote Group this year, the company’s President and Chief Executive, Aliko Dangote, has said. The plants now at various stages of construction will add about 13.5million metric tons (mmt) of cement per annum to the existing capacity, when completed later this year.
Addressing a group of African businessmen in his office at the weekend, Dangote said the group’s core business focus is to provide local value-added products and services that meet the basic needs of the populace through construction and operation of large-scale manufacturing facilities across Africa.

The ongoing plant projects are Zambia, 1.5mmtpa; Tanzania, 1.5mmtpa; South-Africa, three mmtpa; Republic of Congo, 1.5mmtpa; and Gabon 1.5mmtpa, Dangote said. Back home in Nigeria, he said the company is already working on additional third and fourth production lines to the existing six mmtpa in Ibese, Ogun State to bring the total capacity to 12mmtpa and another three mmtpa line currently being added to the Obajana cement plant in Kogi State.
Dangote said the companies are focused on building local manufacturing to generate employment, prevent capital flight and provide locally produced goods for the people.
He disclosed that presently, Obajana is the largest cement plant in sub-Saharan Africa with a capacity of 10.25mmtpa and an additional 3mmpa planned before the end of this year. Dangote stated that the group would continue to lead other investors to ensure Nigeria becomes an industrial giant that is self- sufficient in production rather than being a leader in importations. Stressing on the need for investments in the real sector, he said: “This indeed, shows that Africa is gradually taking its destiny in its 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 the much desired accelerated growth and development that we have yearned for.” The developmental challenges of Africa are quite tremendous. According to a report by the McKinsey Global Institute issued in June 2010, Africa requires at least $46 billion in spending annually to meet infrastructural needs.

It is obvious that African governments alone cannot hope to meet this demand due to the various competing needs in other aspects of the economy.