Nigerian business mogul invests N62 billion on cement in Ethiopia

Nigerian business mogul, Alhaji Aliko Dangote

Nigerian business mogul invests N62 billion on cement in Ethiopia

A Nigerian business mogul, Alhaji Aliko Dangote has commenced the construction of a cement factory worth more than USD 400 million (about N62 billion) in Addis-Ababa, the Ethiopian capital.

Dangote who disclosed this on Sunday to newsmen in Addis Ababa said that he was putting up the factory and had already signed the relevant agreement with the Ethiopian government.

The businessman, who was on the entourage of President Goodluck Jonathan to Addis-Ababa, said he had since mobilised to site.

“The investment is something we have been discussing with the Ethiopian government for a little while. We signed an agreement with the government just two days ago.

Two and half million metric tones

“We have already started and we have our contractors on site. We have already opened a Letter of Credit for the entire project, because it is a turn-key project and we hope we will finish by October 2014.
“The project is over USD 400 million of which we believe if there is additional demand we are always there to increase the capacity of the plant,’’ he said.

Dangote said the plant which is nearly 90 kilometres away from the capital city would produce initially, two and half million metric tonnes of cement.

He said it also has the potential to increase on its production capacity.
The business mogul said the factory’s workforce, both direct and indirect, would be in excess of 5,000 people, among which would be Nigerians at the top management level.

Huge investment

“Really, it will create quite a lot of jobs. Mind you, even in a country like Nigeria when we are talking about an investment worth USD 400 million to USD 450 million, it is a huge amount of money.

“And for a country like Ethiopia, it is also a very-very huge investment.
“Nigerians will benefit quite a lot because we have majority Nigerian shareholders. We don’t have Ethiopian shareholders because the company is formed and being managed by Nigerians and it is listed in Nigeria.

“Directly, Nigerians will benefit because if we declare profits we will pay dividends from here and then they will end up actually collecting their own share of the profit,’’ he said.

Dangote said some of the Ethiopian and other nationals working in the factory would be sent to the Obajana cement factory in Nigeria for training on equipment and techniques.

Maximum co-operation

He disclosed that during his meeting with the Ethiopian Prime Minister, Mene Zenawi, he was given the freedom to invest in any sector of the economy of that country.

The businessman said he would explore other sectors like agriculture, food and beverages for investment in Ethiopia, and disclosed that he had received maximum co-operation and support from the Ethiopian government.

Nigeria-Ethiopia Bi-national Commission

It would be recalled that President Jonathan has just concluded an official tour of three African nations, namely Rwanda, Ethiopia and Ghana, for an investment drive.
Dangote was one of those who accompanied him.

While in Ethiopia, Jonathan and Zenawi had signed an agreement to revitalise the Nigeria-Ethiopia Bi-national Commission and to encourage both countries' private investors for cross-investments.

NAN/Uche Iheanacho