Dangote Industries Limited is set to leverage on the Togolese market to boost revenue following its agreement with the Government of Togo to produce fertilizer and build a cement factory in the country.
Recall that Nairametrics had previously reported when the company first announced the deal to explore Togo’s huge phosphate reserves.
According to a joint statement released by Dangote and the Togolese government, the deal signed by Dangote to build a cement factory in Togo would cost $60 million with an annual capacity of 1.5 million tonnes. The capacity will enable it to meet the rising demand of both local and neighbouring countries.
The cement factory will be in the country’s capital, Lome and the construction is scheduled to start in the first quarter of 2020.
Commenting on the deal, the Togolese President, Faure Gnassingbé said, “The structural transformation of our economy is the main objective we have set ourselves in the context of the 2018-2022 NDP. By processing our phosphate we will not only create jobs but we will also be able to provide our farmers with good quality fertilizers at an affordable cost.
“Having an industrial investor like Alhaji Dangoté shows that our efforts to improve the business climate are paying off. We intend to continue in this dynamic for the well-being of Togolese men and women.”
The President of the Dangote Group, Aliko Dangote also shared optimism on how the partnership would enhance economic development.
‘’This partnership is in line with our transformation agenda in creating prosperity and enhancing economic development not only in Togo but also in Africa. In addition, the Dangote Group is determined in supporting the Government of Togo in its industrialisation strategy aimed at creating jobs for its citizens and making Togo an attractive investment destination.’’
More details: With Togo being one of the leading producers of phosphate resources in Africa, the country intends to benefit from the expertise and investment capacity of Africa’s largest industrial group, Dangote, according to the statement.
The new Dangote’s Petroleum Refinery and Fertilizer complex in Ibeju-Lekki, Lagos, makes Dangote one of the largest ammonia producer on the African continent.
Therefore, the agreement of the fertilizer production entails Togo providing access to phosphate resources as well as the Dangote Group also providing access to ammonia and to the Nigerian market. This is because Ammonia is an essential ingredient in the transformation of phosphate into fertilizer.
