Dangote Group Eyes Expansion in Gabon, Cement and Fertilizer Investment Opportunities Under Exploration
Gabon: Dangote Explores Investment Opportunities in Cement and Fertilizers
In a significant development for Gabon’s industrial sector, President Brice Oligui Nguema has extended an invitation to Aliko Dangote, the chairman of Dangote Industries Limited, to consider investment opportunities in cement and fertilizer production within the country. This move is indicative of Gabon’s strategic efforts to diversify its economy and enhance its industrial capabilities.
Aliko Dangote, Africa’s richest man, is known for his vast business empire that spans across various sectors, including cement and fertilizer production. His company, Dangote Industries Limited, has made substantial investments in several African countries, contributing to economic growth and development. The invitation from President Nguema is a testament to the confidence in Dangote’s ability to bring about industrial transformation.
The potential investment in Gabon’s cement and fertilizer sectors is poised to have a transformative impact on the country’s economy. Cement is a critical component of infrastructure development, and with Gabon’s plans to expand its construction sector, a local cement production facility could significantly reduce import costs and stimulate the construction industry. Similarly, investment in fertilizer production, particularly urea and phosphate, could boost Gabon’s agricultural productivity, ensuring food security and providing the foundation for a robust agro-based economy.
The collaboration between Dangote Industries and Gabon could also lead to job creation, technology transfer, and the development of local expertise, aligning with President Nguema’s vision of a diversified and self-sustaining economy. The discussions and assessments to finalize the investment plans are expected to continue in the coming months, marking a pivotal step towards strengthening economic ties between Nigeria and Gabon.
This development comes at a time when Dangote has decided to halt investments in Nigeria’s steel industry, a decision made to avoid accusations of monopolistic intentions from the Nigerian Federal Government. The shift in investment focus to Gabon’s cement and fertilizer sectors underscores Dangote’s commitment to fostering economic development across the continent and his strategic vision for his industries.
The potential investments by Dangote Industries in Gabon are a clear indication of the growing interest in Africa’s industrial sector and the continent’s untapped potential. As these plans progress, they are likely to set a precedent for other African entrepreneurs and investors, highlighting the opportunities that exist within the continent for sustainable economic growth and development.
The establishment of the Nigerian group Dangote Industries Limited is being prepared, according to what emerged from an audience granted on July 23 in Libreville to a delegation of the said group by Gabonese President Brice Clotaire Oligui Nguema. “We have explored where we can build a cement production plant… We are also looking for opportunities for investments in fertilizers,” declared Aliko Dangote, CEO of Dangote Industries Limited, at the end of the audience.
In detail, apart from a cement plant, the Nigerian group wants to invest specifically in urea and phosphate. In the long term, this would make fertilizers available and boost agricultural production. The group is back on the charge four years after it announced, in 2020, its intention to invest in Gabon, around 75 million dollars (45.3 billion FCFA) for the construction of a clinker grinding unit (raw material for cement) with a capacity of 3,000 tonnes per day. If the cement plant project comes to fruition this time, it will increase the country’s production, which, in the first quarter of 2024, stands at 158,194 tonnes.
Dangote’s planned expansion in Gabon will allow the group to consolidate its position in the Cemac sub-region where the group already has a foothold in Cameroon. This country is among the top 3 most successful African subsidiaries of the Nigerian cement group with 38% of the market share.
In Gabon, Dangote will nevertheless encounter Turkish competition. Indeed, the government signed agreements in May 2024 with the Turkish consortium Ucgen, which specialized in the field of construction and installation, to invest 5 billion dollars (3,019.6 billion FCFA) in the construction of three factories: cement, fertilizer production and steelworks.
