- Dangote Group partnering with Ethiopian Investment Holdings to take over state-owned sugar facility
- Company committing $400 million to double cement plant capacity to 5 million tons
African billionaire Aliko Dangote is set to acquire Ethiopia’s troubled Omo Kuraz Sugar Factory, marking a significant expansion of his business empire in East Africa’s largest economy. The move comes alongside plans to double his cement production capacity in the country.
Dangote Group, in collaboration with Ethiopian Investment Holdings, aims to revitalize a sugar sector that has absorbed over 1.1 billion US dollars in state investment with limited success. The Omo Kuraz facilities, central to Ethiopia’s sugar self-sufficiency plans, have consistently underperformed due to financial and infrastructural challenges.
The Nigerian industrialist is simultaneously investing 400 million US dollars to expand his Mugher cement plant’s capacity to 5 million tons annually, despite past security incidents including a 2018 attack that resulted in the death of his country manager. Dangote recently expressed optimism following meetings with Prime Minister Abiy Ahmed, citing Ethiopia’s visible development progress.
The sugar sector acquisition represents a crucial shift from state-led industrialization to private management. The Omo Kuraz project, designed to process 60,000 tons of sugarcane daily and produce 250,000 tons of sugar annually, has struggled with two of its five factories remaining incomplete. Dangote brings experience from operating a 60,000-hectare sugar plantation in Nigeria.
“While we have experienced ups and downs, I am very pleased with this investment, and I am pleased to announce that we have successfully repatriated 100 percent of the loans and 100 percent of our dividends,” Dangote stated, signaling confidence in Ethiopia’s economic potential.
His group is also exploring opportunities in fertilizer production, contingent on natural gas availability.
The investments come as Ethiopia works to attract foreign capital through economic reforms, though challenges persist regarding security.