18 February 2013

Nigeria: Dangote Increases Investment in Zambia to U.S.$800 Million

Dangote Cement is set to open another $400 million cement plant in Lusaka by 2014, bringing its total investment in Zambia to $800 million, the group said in a statement.

It said that the opening of the Dangote Ndola plant, which is situated in Masaiti, will make Dangote the biggest cement producer in the country producing 3000 tons per day.

"The local cement production scenario will never be the same again with the coming of Dangote, which has now entered the Zambian market. Plans to open another 1.5 metric tons per year capacity plant in the capital city after the completion of the Ndola plant in 2014 have reached an advanced stage," the statement said.

In a related development, the President/Chief Executive of Dangote Industries Limited Aliko Dangote has urged developed countries to promote investments in Africa rather than providing aids for the continent.

He argued that through investment in the real sector the continent can achieve real growth and development.

Dangote, who was speaking at a recent event in Lagos added that African businessmen should increase the tempo of their investments across the continent as to spur growth and development in the continent.

Africa, he insisted will be better developed through investments by Africans, adding that most people do not seem to know much about Africa, but have only a notion of the continent that is based on history or hearsay.

Dangote who has investments in about 14 African countries acknowledged that business risks exist in Africa but are no major consequences.

"Before, there was the risk that governments might nationalize assets but now we have investment agreements in the country that says if it does get nationalized, they'll have to pay us.

"I am not saying it is as good as elsewhere but investment in the continent comes with almost the highest ROI in the world. In Zambia for instance, it used to be that Zambians had to hold 51percent of any business operating in the nation. Today, the law has changed," he said.

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