The Dangote Group is still considering constructing a cement plant in Zimbabwe. The company, which is owned by Nigerian billionaire Aliko Dangote, first expressed interest in investing in Zimbabwe in 2015, during his most recent visit.
It was reported at the time that the company was interested in constructing a $400 million cement plant, but the project was never realized for reasons primarily attributed to the previous administration’s excessive bureaucracy.
The Nigerian multinational industrial conglomerate stated in 2022 that they might soon establish a cement manufacturing facility in Zimbabwe. When that occurs, the plant will become the 11th in Africa for the Dangote Group as it increases its presence in the continent.
Dangote plans to construct a cement plant in Zimbabwe
Aliko Dangote the owner of Dangote Group recently said that he would construct a new cement plant in Zimbabwe in a move to boost foreign investment in the Southern African country which is in dire need of such kind of investment.
Dangote who owns Dangote Cement also noted during his meeting with the Vice President of Zimbabwe, Emmerson Mnangagwa that he was also intending to invest in coal mining and power generation.
Mr. Dangote made it clear that he had made up his mind to construct a cement plant in Zimbabwe and that was the reason being his meeting. He also had plans to meet President Robert Mugabe.
Dangote further noted that upon completion of the cement plant in Zimbabwe, 1.5 million tonnes of cement would be produced yearly. Construction work is set to begin in the first quarter of 2016 with the cost for construction of the plant not given.
The government of Zimbabwe halved this year’s growth target to 1.5 percent due to a scorching drought that hit the key agriculture sector.
Zimbabwe has been struggling for five years to recover from a catastrophic decade of contraction that was marked by billion% hyperinflation and widespread food shortages, and some analysts say Zimbabwe could tip back into a downturn this year.
Dangote to construct cement manufacturing plant in Zimbabwe
Dangote Group now plans to construct a cement manufacturing plant in Zimbabwe chief strategist, Dr. Abdu Mukhtar, has said. He added that they now feel comfortable and are excited about venturing into Zimbabwe.
Dr. Mukhtar said was satisfied with the preliminary work and was ready to roll out its projects. He added that the group’s geologists, who set camp in the country on Wednesday, would remain on the ground for site visits and collection of samples for analysis ahead of the setting of a cement manufacturing plant.
Dr. Mukhtar made the remarks after a meeting with Emmerson Mnangagwa, the acting president at his Munhumutapa offices yesterday. “We are part of the Dangote Group that was here a few months ago and are here to continue working on the projects that we are yet to do in Zimbabwe,” he said.
“We are back and everything is on track.2016 is going to be a very active year as we kick off the projects.” Dangote Industries Limited has also expressed interest in coal mining and power generation. Dangote is owned by Africa’s business mogul, Mr. Aliko Dangote.
Dr. Mukhtar said a lot of background work, including analysis of details, had been taking place since Mr. Danngote’s visit in August last year. Dr. Mukhtar is expected to hold a series of meetings with officials from the Office of the President, the Cabinet, and senior government officials.
“We now feel very comfortable and we are here with the experts who are expected to go out into the field. The experts will be here for about three weeks and given our good programme, they will visit the sites identified for these projects.”
Samples will be collected for analysis after which we will zero in on the sites suitable for the projects which include cement plants, power generation plants as well as coal mining.
The government has already proposed a number of sites where the company can set up the cement manufacturing plant.
Dr. Mukhtar said their devotion to investing in Zimbabwe is at an all-time high and all the planned projects are on track. “No hurdles have been encountered so far by the team given the support they have been getting from the government officials,” Dr. Mukhtar added.
The Dangote group has already registered a company with the Zimbabwe Investment Authority and has been licensed.
The group is an expansive business empire and its presence is felt in several African countries including Zambia where it has established a cement manufacturing plant worth $400 million. The group mainly deals in manufacturing, logistics, and power generation.
Dangote’s investment deals are set to be a significant boost to the economy of Zimbabwe since it coincides with the deals the country has recently sealed with China and other countries.
The deals are being implemented under the country’s economic blueprint, Zim-Asset, and will be reinforced by the 10-Point Plan which cuts across all the key economic enablers. The plan was proposed by President Mugabe during his state of the nation address last year.
The implementation of the plan is underway as government ministries have started debating on the mega projects that are likely to contribute to economic growth and job creation.