Dangote to invest $ 150m in a second cement plant

Aliko Dangote has announced the construction of a new cement plant with an annual production capacity of 1.5 million tonnes.

During his trip to Yaoundé on July 2, the Nigerian billionaire also expressed his interest in oil, rice and sugar in Cameroon.

At the end of a meeting granted by Prime Minister, Philemon Yang, Dangote revealed the construction in the coming weeks as its second cement plant in the country.

The tycoon intends to invest 88.7 billion CFA francs ($ 150 million) to set up a plant of the same caliber like that of Douala, with a target of 1.5 million tons of annual production. The new cement plant will be located in the outskirts of Yaoundé. "The work (to be carried out by the Chinese Sinoma)will begin before the end of the year and will last 20 months," said an internal source.

Trucks "This project aims to make provision for the increase in the demand for cement in Cameroon and Central Africa," said Aliko Dangote, who also stated his intention to diversify his activities in the country by exploring opportunities in hydrocarbons (oil and gas) and agriculture (rice and sugar). The businessman also unveiled the acquisition of over 220 trucks which will be used to distribute Dangote cement around the country.

The Dangote cement in Douala intends to produce 950 000 tonnes by the end of the year and win 30% share of the local cement market. The construction of another plant in Yaoundé will add even more competition in a market where evolving Cimencam (Lafarge), Moroccan African Cement (Cimaf) and in the coming days, the Turkish Medcem.

According to Abdullahi Baba, general manager of Dangote Cement Cameroon, the domestic cement supply (production and imports) amounted to 5.2 million tonnes in 2014, while the demand was in excess of 9 million tonnes with an annual growth of 8%.