Tanzania: With its cement plants across Africa undergoing expansion and new investments in Asia, Dangote Cement has unveiled plans to attain a production capacity of 81Mt/yr before 2020, as it commissions its US$600m plant in Tanzania.
The President of Dangote Group, Aliko Dangote, said 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 group revenue. Dangote added that the pan-African drive will aid the 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 demand, while noting the need to boost export supply in the eastern Africa regional bloc.
"The construction sector is a major emerging 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 US$600m investment in Tanzania will further speed up infrastructural development and complement the government's efforts in stimulating economic growth and creating jobs. When in full production, this plant will make Tanzania self-sufficient in cement, with a lot of cement for export to neighbouring countries," said Dangote.