Cement: Dangote, Cameroon Kick-off $700m Deal

The Republic of Cameroon and Dangote Group Monday signed a $115 million Invest-ment Agreement for the construction of a composite cement production plant, which will result in the production of 1.5 million metric tonnes of cement in Douala, Cameroon annually.

The $115 million agreement, which the company described as the first tranche of a $700 million long term investment projection in Cameroon's various real sector arms, was signed by President of Dangote Group, Alhaji Aliko Dangote, and the Prime Minister of Cameroon, Philémon Yang, who was represented by the minister of Mines, Industry and Technological Development, Mr. Badel Ndanga Ndinga.

Other Cameroon government officials who signed parts of the agreement include the Minister of Commerce, Mr. Mbarga Atangana; Minister of States for Transport, Bello Bouba Maigari; Governor of Douala, Mr. Francis Fai Yengo; and the Director General of the Cameroon Ports Authority, Mr. Dayas Monoume Jean Marcel. Speaking after the endorsement, Yang praised the Nigerian investment drive in its sister nation and said it would go a long way to improve economic and political cooperation between the two countries.

"I extend my congratulations to Dangote Group and its president, Alhaji Aliko Dangote, for this massive investment initiative in Cameroon. It will certainly change the industrial landscape of Came-roon," he said.

The prime minister hailed Dangote for its belief in the Cameroonian economy. According to him: "We salute the determination of Dangote who believed so much in this project and has stopped at nothing to make it happen."

While stating the country's commitment to its responsibilities and obligations in the agreement, he said the achievement represented an endorsement of the industrial policy thrust of President Paul Biya of Cameroon.

He stated the government's hope that the project would be completed within the scheduled time frame of 14 to 18 months.

Responding at the second phase of the event, which was the foundation laying of the cement factory, within the premises of the country's largest sea port, in the North Eastern city of Douala, Dangote said the project would be financed 100 % with funds raised outside Cameroon and therefore not put any pressure on the nation's financial system.

He said the signing of the Investment Agreement for the Development and Operation of a Quarry and Cement Grinding Unit between Dangote Industries Limited (DIL) and the Government of Cameroon, was a step forward in the mutually beneficial business relationship.

Dangote added that the fact that the signing was followed by the laying of the first foundation stone that signalled the formal commencement of the project was evidence of his company's commitment to the investment initiative.

"From our projections, this $115million project with an installed capacity of 1.5 million metric tonnes per annum, will take between 14 and 18 months to complete. We project that we will import 1 million tonnes of clinker per year. We hope to use up to 30 % of local raw material in line with our business philosophy of adding value to the economy, everywhere we operate," he said.

"We want to assure you all of successful delivery of this project, which is only one of our many other successful projects in 14 other African countries, where we have a presence. Our choice of Cameroon for this multi-million dollar investment is quite strategic as Cameroon is the largest economy in Central Africa. In addition, Cameroon has vast mineral resources, a liberal economy and political stability that foster economic development, which is vital for growth," he stressed..

"This indeed, shows that Africa is gradually taking its destiny in its own hands rather than wait for investors from outside Africa. Investment in the real sector of the economy is the only way that our continent can achieve the much desired accelerated growth and development that we have yearned for," he said.