Dangote considers Ugandan investment

Dangote considers Ugandan investment
Published: 24 January 2008

Nigerian conglomerate Dangote Industries Ltd, with its annual turnover in excess of US$1.4bn, - has expressed intentions to invest in Uganda’s cement industry. Dangote’s president, Aliko Da
was very much interested to participate in this fast-growing marketplace.

Chairman of the UIA Patrick Bitature said once the Dangote’s deal is signed, it would boost the production of cement cutting down on the country’s huge annual import bill as well as create new jobs.

Aliko Dangote explained that when all the various logistical issues are completed his company would most likely construct a clinker plant in one of the areas where suitable raw materials have been identified.

Currently Uganda’s cement production is rated at about 0.6Mta from the both Hima and Tororo well short of total national demand which is now estimated at over 1Mta.

A growing construction industry in Uganda in the last decade or so has created a high demand for construction material especially cement with continued spending in infrastructure and a number of sizeable hotel projects helping to boost demand.

Last year, Hima commissioned a Shs185 billion investment in a second line in Kasese District which is set to boost its production to 830,000tpa up from a current 350,000tpa. The plant, expected to be up and running in 2010, will include the installation of a clinker line with a capacity of 300,000tpa.

Dangote operates its cement business under its wholly owned subsidiary. Obajana Cement Plc (OCP). The company currently produces about 4Mta of cement as well as importing bulk cement via terminals located in Lagos and Port Harcourt. In addition, OCP also has a controlling interest in the Nigerian Stock Exchange listed Benue Cement Company Plc. (additional reporting by All Africa.com) Photo: Hima Cement Works with credit to Hamilton de Oliviera.