Dzata Cement did not cause UT Bank collapse

Dzata Cement did not cause UT Bank collapse
14 August 2018

Dzata Cement of Ghana was not responsible for the collapse of UT Bank in 2017. The cement producer was previously thought to be a major cause of the bank's folding, incorrectly attributed to the cement company defaulting on a loan. 

However, Ibrahim Mahama, who owns the cement facility, said the repayment of the loan was to start after the company began operations and cement sales. The licence of UT Bank had also been withdrawn by the Bank of Ghana in August 2017 and had been taken over by GCB Bank Ltd.

The US$200m Dzata Cement was only 80 per cent complete when the bank collapsed, the statement said. The cement factory had projected a daily revenue of GHS1m (US$206,294), which would be able to clear to loan in under five years, according to the company's solicitors. 

Dzata cement factory was commissioned in November 2016 at the Free Zones enclave in Tema. It has a reported capacity to produce 1Mta and became the third local cement manufacturing company after Ghacem and Diamond Cement.

Published under Cement News

Tagged Under: Ghana Dzata Cement