One of Africa’s leading business groups, Dangote, is set to construct a US$400 million factory in Ethiopia, probably hoping to take advantage of the construction boom in the Horn of Africa.
The deal, between Dangote, a Nigerian entity and Oromia Investment Bureau, was signed in Addis Ababa, Ethiopia on Wednesday.
Work on the cement factory, which will be built in the Oromia region of Ethiopia, is expected to be completed within 15 months, with production expected to peak at two million tons of cement annually.
More than five foreign companies have heavily invested in the Ethiopian cement industry, as the country enjoys a boom in the construction industry.
Demand for cement on the rise in Ethiopia and the country is forced to import large quantities of cement from Pakistan and Egypt.
Dangote group joins a number of cement factories being constructed since the construction boom in the Horn of Africa country.
The investment by the Nigerian company is expected to create 600 jobs.
The Dangote group has 13 subsidiaries and operates in 14 African countries including Nigeria.