- Total cost estimated at $4.34 billion across 11 countries
- Nigerian producer targets 100 million tons capacity by 2020
Dangote Cement Plc, Africa’s biggest producer, will add 25 million metric tons of capacity across 11 countries after agreeing to contracts with Chinese construction company Sinoma International Engineering Co. Ltd.
The total project cost is expected to be about $4.34 billion, Lagos, Nigeria-based Dangote said in a statement on Wednesday. Cement facilities will be built in Nigeria, Ethiopia, Kenya, Zambia, Senegal, Niger, Mali, Cameroon, Ivory Coast, Ghana and Nepal.
Dangote Cement, controlled by Africa’s richest man, Aliko Dangote, has expanded capacity five-fold in the last four years as the company invested outside its home market. The latest developments will boost capacity to more than 70 million tons and Dangote is targeting further gains to about 100 million tons of potential output by 2020, the billionaire said in a speech in Lagos.
“We are progressing very aggressively," Dangote said. “Africa will not lack cement.”
Dangote, which is seeking to meet demand by African governments for new infrastructure including new ports, roads and damns, is starting up five new plants this year.
The billionaire isn’t deterred by recent market turmoil and declining commodity prices, he said in an interview.
“I am very confident when it comes to Africa," he said.
Dangote Cement shares declined 2.3 percent to 165.15 naira as of 3:40 p.m. in Lagos, valuing the company at 2.8 trillion naira ($14 billion). The stock is down 17 percent this year, compared with a 19 percent fall in the Nigeria Stock Exchange All-Share Index.