Dangote Cement Plc plans to invest $1 billion over the next four years to expand its production capacity across Africa, as rising infrastructure development drives demand for building materials.
The expansion plan was disclosed during an investor conference call in Lagos by the company’s Chief Financial Officer, Gbenga Fapohunda.
The move demonstrates the company’s strategy to strengthen its footprint across key African markets while positioning itself to meet growing demand for cement linked to infrastructure projects across the continent.
What the company is saying
The company says the investment will significantly boost its production capacity in several African markets.
- The investment will go into “Nigeria, Ethiopia and some other countries,” Fapohunda said during the investor conference call.
- Dangote Cement plans to increase its production capacity by about 45 percent to 80 million tonnes over the next four years.
- The expansion will be financed through a combination of operating cash flow, supplier credit, commercial papers, bonds, and bank loans.
The investment reflects the company’s long-term strategy to strengthen production capacity across Africa and meet growing demand for cement driven by infrastructure development.
More Insights
Demand for cement across sub-Saharan Africa is expected to grow as governments ramp up spending on infrastructure development.
- According to the African Development Bank, countries in the region require about $170 billion annually for infrastructure projects.
- Governments from South Africa to Ghana are prioritising the construction of roads, ports, and power plants.
- These investments are expected to increase demand for cement and other building materials across the continent.
The development places Dangote Cement in a strong position to benefit from the infrastructure boom while expanding its regional market share.
Dangote Cement has also been ramping up exports as part of its broader growth strategy beyond Nigeria.
- The company plans to increase exports of cement and clinker to 10 million tonnes by 2030, up from 1.4 million tonnes recorded in 2025.
- Shares of Dangote Cement closed at N809 at the end of trading in Lagos and have gained 33 percent this year.
- This performance compares with a 26 percent gain recorded by the NGX All Share Index over the same period.
The company also reported strong financial performance, with net income more than doubling to N1 trillion for the year ended December 31 despite a slight 0.9 percent decline in sales volumes to 27.5 million tonnes.
What you should know
Recently, Dangote Cement Plc signed a $1 billion agreement with Sinoma International Engineering for the construction of 12 new cement plants and the expansion of existing facilities across Africa.
Nairametrics earlier reported that Dangote is preparing to launch a $1 billion investment project in Zimbabwe.
The project, which will include cement manufacturing, coal mining, and power generation, is part of a broader plan by the Dangote Group to deepen its presence across the continent.
