Dangote Group to Invest $150 Million to Build Second Cement Plant in Cameroon

   Aliko Dangote announced that in addition to his interest in Cameroon's hydrocarbon, rice and sugar industries, he would invest in a new cement plant with an annual output of 1.5 million tons, according to the website of Youth Africa magazine on July 3.

   Aliko Dangote took a turn in Yaounde and left, but was vocal. In a meeting with Prime Minister Philemon Yang on July 2, the Nigerian billionaire announced the start of construction of a second cement plant in the country in a few weeks.

   The tycoon plans to invest 88.7 billion CFA francs (about 150 million US dollars) to build a new cement plant on the outskirts of Yaounde, the same size as the one put into operation in Douala in March this year, with an annual output of 1.5 million tons of cement. On the outskirts of Yaounde, a Dangote Group insider said: "The cement plant will start before the end of this year (Sinoma International is responsible for the construction), and the construction period is expected to be 20 months."

   "The plan aims to prepare for the new growth in cement demand in Cameroon and the Central African region," said Aliko Dangote. Dangote also confirmed his intention to diversify the group's business in Cameroon by developing the country's hydrocarbon (oil and gas) and agricultural (rice and sugar) industries. At the same time, the businessman also revealed that he would purchase more than 220 heavy trucks to transport Dangote Group's cement to all parts of the country.

   The Duara Dangote Cement Plant plans to produce 950,000 tons of cement by the end of this year and capture 30% of the local cement market. The announcement of the group's second cement plant in Yaounde will further intensify competition among major local cement companies such as Cameroon Cement Company (Cimencam) (owned by France's Larfage Group), Morocco's African Cement Company (Cimaf) and Turkey's investment cement company Medcem, which is about to start construction.

   Abdullahi Baba, general manager of Dangote Group Cameroon Cement Company, said that in 2014, the national cement supply (including domestic and imported) was about 5.2 million tons, while its demand exceeded 9 million tons and was growing at an annual rate of about 8%.