Examining Dangote Cement’s $250m Cameroon plant
Dangote Cement plc has added a 1.5-million metric ton per annum (mmtpa) cement plant to its existing plants across the African continent. This new achievement came alive at the inauguration of the $250 million cement grinding plant in Douala, Cameroon, last week.
The inauguration, which was done by President Paul Biya of Cameroon, who was represented by Philemon Yang, the prime minister, also saw the Dangote Group laying the foundation stone for a 200-metre jetty in Base Elf area, Port Autonome De Douala.
Speaking at the ceremony, Yang lauded the Dangote Industries president/chief executive for investing in Cameroon, which he said was in agreement with his government’s policy of inviting industries to contribute to the growth of the Cameroonian gross domestic product.
“Dangote has shown willingness to play a significant role in the industrialisation of the Cameroonian economy,” he said.
“The new cement grinding plant and jetty are clear indications that Cameroon is open and welcome to investments from Nigeria and Africa. As a liberal economy, the country supports investment from the private sector,” the Cameroonian prime minister said.
Aliko Dangote, president/chief executive, Dangote Group, said the plant was a great feat in the operations of the company, saying “the plant is our largest green-field project in a neighbouring country with which we not only share a boundary but also a long history of brotherly relationship dating from our colonial days.”
The company signed the investment agreement for the development and operation of a quarry and cement grinding with the government of Cameroon on September 19, 2011, Dangote said.
He said that massive economic revolution of the Cameroonian government in the power sector, infrastructural development, industrial development and the transportation industry had impacted positively on businesses.
“We can attest to this as we have been one of the major beneficiaries,” said Dangote, noting that the firm first came into Cameroon in 2008, but signed an Investment Agreement with the government of the country three years later.
Dangote said the investment had increased the country’s economic value through creation of thousands of jobs.
He listed other benefits of the investment to include – conservation of scarce foreign resources through drastic reduction of importation of cement as well as creation of revenue for the government through payment of VAT, royalties and taxes.
The Dangote president said plans were on the way to start the second phase of the plant, which would double its capacity from the current 1.5mmtpa to 3.0mmtpa, and inaugurate more than 200 new trucks to enhance service delivery to its customers.
“Our desire to increase our investment with the phase two project is based on not only the fast growth rate of the Cameroonian economy but also due to the warm welcome extended to us and the enabling environment created by its government.
“Our choice of Cameroon for this multi-million dollar investment is strategic because it is the largest economy in Central Africa and is well endowed with abundant natural resources,” he said.
It would be recalled that the Dangote Group, on August 26, 2015, signed a $4.34-billion contract with Sinoma International Engineering Company Limited, a Chinese construction firm, for the construction of 11 new cement plants in some African countries, South America and Nepal in Asia.
Dangote said the total capacity of the proposed plants would be 25mmtpa, projecting that the company’s combined capacity within Africa and outside the continent would hit 100mmtpa by 2020.
ODINAKA ANUDU