Dangote to double investment in Cameroon

Dangote is to almost triple the output from its Douala plant in Cameroon from the 1.5million tonnes a year to over 3m.

The initial cost is $150m. The completion of Dangote Cement’s plant in Douala, Cameroon, worth $150m made the country self-sufficient in cement production, with plans afoot to export the product to neighboring countries soon, the company says.

Dangote has imported 220 trucks and trailers to resolve transport issues, and now the cement can be delivered directly to the customers in villages, which is likely to lead to price stabilization.

The Cameroon plant will be commissioned within the fourth quarter of this year. Last month, Dangote commissioned a cement plant in Ethiopia.

Dangote Cement has called on governments to use cement concrete in road construction in line with global best practice.

The company said concrete roads are more durable, save lives and are cheap in the long run.

Speaking at the Abuja Housing Fair, training manager of the Obajana Plant, Haruna Adinoyi, said Nigeria will benefit more by using concrete.

“Concrete roads may be about 15 to 20 percent more expensive than asphalt road but in the long run, in terms of durability, it is better because the maintenance cost is near zero,” he said.

Adinoyi attributed the current high price of cement in the market to the poor state of infrastructure in the country which effects the cost of production.

“Because of the state of our infrastructure, manufacturing in Nigeria is still very expensive; you have to install your own power plant, construct roads and, in our case, even construct dams for our water supply, and all these add to the cost of production,” he said.

“What we are witnessing as a country is a systemic problem; cement prices cannot just come down when the price of other inputs are high. We brought the price drastically down at some point but because of what happened to the economy, we were forced to go back up.

“But with good governance, there is the tendency that infrastructure development will get attention and therefore the overall cost of manufacture and cost of doing business in Nigeria will begin to come down and that will definitely reflect in the price of cement.”


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