Dangote Renews Confidence in Ethiopia with $400M Expansion of Cement Plant
On 15 February 2025, Aliko Dangote announced that he is investing USD 400 million. In in Ethiopia to double the capacity of its cement operations. The announcement came during the 38th African Union Summit 2025 (#AUS2025) being held in Addis Ababa.
In particular, Dangote Cement in Ethiopia will be able to increase its annual production from 2.5 to 5 million tonnes within 30 months. The expansion project is expected to create 25,000 direct and indirect jobs in manufacturing, distribution and construction.
Dangote could not hide his excitement regarding the recent reforms carried out by Ethiopia which allows profit repatriation out of Ethiopia. “Ethiopia is one of the most promising investment destinations outside of Nigeria,” Dangote noted enthusiastically.
Dangote entered the Ethiopian market in 2015 by setting up a cement plant in Mugher in the Oromia region. The factory has experienced many ups and downs with regular vandalisms and frequent protests from local workers and residents. Dangote Ethiopia’s country manager and two other employees were even shot dead in 2018. The environment was so challenging that it was rumored that Dangote would soon divest from Ethiopia.
“The Government of Ethiopia is pleased to see Dangote Group expanding its footprint in the country. Ethiopia is undergoing an economic transformation that prioritizes industrialization, investment and job creation.”
Ethiopia Investment Holdings CEO Brook Taye
Fortunately the Government of Ethiopia rolled out a number of business-friendly reforms in 2024. The amended laws and regulations opened certain strategic sectors and state-owned enterprises (#SOE) to foreign investments, relaxed land ownership rules, and even allowed its currency to float.
The CEO of the Ethiopian Investment Holdings (EIH) — the largest Sovereign Wealth Fund (#SWF) in Africa — Brook Taye welcomed Dangote’s renewed confidence in the Ethiopian market and underscored that the recent reforms are bearing fruit.
Other than cement production, Dangote is considering investing in the Omo Kuraz Sugar Development Project in partnership with EIH. Dangote is also in talks to set up a urea fertilizer plant as the natural gas sector in Ethiopia picks up speed.