Dangote, which is majority-owned by Aliko Dangote – the richest man in Africa, has previously declared plans to build a 3-million-tonne-a-year cement factory in Kenya in its bid to enlarge its production capacity.
The Kenya cement plant is foretold to cost at least Sh50 billion.
Mr Dangote has already obtained the Kenyan government’s approval to prospect for limestone in Kitui.
Besides Kenya, Sinoma International will set up other plants in Cote d’Ivoire, Senegal, Ghana, Mali, Ethiopia, Nigeria, Cameroon, Niger, Zambia, and another in Nepal – all of which will raise Dangote’s capacity by about 25 million tonnes from the current 45 million tonnes.
“The projects are going to be delivered within the next 30 months,” Mr Dangote told journalists on Wednesday. “We are not going to stop there. By 2020 we are targeting 100 million tonnes.”
“We have been partnering with Sinoma for a very long time and I can tell you that they are very reliable to handle these projects,” he said.
Dangote’s entry into Kenya is expected to escalate price wars in the local cement sector as the company strives to grab a market share from local players who are fighting to protect their stakes in the highly competitive environment.
However, the rapid expansion of key infrastructure and the current real estate boom are likely to provide the much needed demand for cement hence shielding the market players against the risk of oversupply.