Dangote Plans to Expand Investments in Ethiopia
February 13, 2017 - The richest man in Africa, Aliko Dangote, is planning to invest in the Sugar industry in Ethiopia, according to the Reporter.
The Ethiopian government has invited the Nigerian business tycoon to invest in the sugar manufacturing sector. Dangote Industries has built the biggest cement factory in East Africa in Ethiopia that started production in June 2015.
Deep Kamara, managing director Dangote Industries Ethiopia, told The Reporter that in a recent discussion between Prime Minister Hailemaraim Dessalegn and Aliko Dangote investment in the sugar sector was a point of discussion. “While they were discussing the yield of sugar and the capacity Ethiopia is building Mr. Dangote took up a position that he would like to see the opportunity to invest in the sugar capabilities in Ethiopia. It is still in the conceptual stage I should say,” Kamara said.
The Ethiopian government through the state-owned the Ethiopian Sugar Corporation is making hefty investments on sugar industries development. Aiming to become one of the top ten sugar producing countries in the world by 2023, ESC is building ten sugar factories in different parts of the country. The ambitious plan aims at boosting annual production capacity from the existing 300,000 metric tons to a staggering four million.
However, the government is facing budget constraint to finance the completion of the ongoing construction of the sugar factories. In addition to looking for loans, the government is trying to attract foreign companies to partner with ESC.
Kamara said Dangote expressed his interest to invest in the Sugar sector. “Within the group we have capability for sugar manufacturing.” However, he said it is yet to be decided whether to buy stake in the existing sugar factories or set up an independent sugar manufacturing plant. “Both options are open for discussion but as I said the discussion is at an early stage and the details have to be worked out,” Kamara said.
Kamara said that Dangote is very optimistic about Ethiopia and wants to continue investing in Ethiopia.