November 10, 2019 / 06 :00PM / Dangote Industries Ltd / Header Image Credit: Dangote Cement Plc
Dangote Industries Limited has signed deals with the Government of Togo (GoT), to make phosphate into fertiliser and build a cement factory in Togo. With over two billion tonnes of phosphate reserves, Togo is one of the leading phosphate producers in Africa. By partnering the Dangote Group, the country intends to benefit from the expertise and investment capacity of Africa's largest industrial group, according to a joint release issued by the Dangote Group and the Communications Department of the Presidency of the Republic of Togo.
Togo's vast phosphate resources are mostly exported in their raw form, and Dangote's project would process some of that phosphate to make fertiliser in-country, aiming to export it to the region. The cost of the project is around $2 billion, the statement from Togo's government said, without specifying how much of that would come from Dangote. Dangote also signed a deal to build a cement factory at a cost of around $60 million.
The establishment of a cement manufacturing plant with an annual capacity of 1.5 million tonnes in Lome, is expected to meet both local and neighbouring countries' demand, the release noted. This plant will use clinker from Togo and Nigeria.
While the construction of the Lome plant is billed to start in first quarter of 2020, its commissioning is scheduled to take place before the end of 2020. The investment, estimated at $60 million is expected to create 500 direct jobs.
The deal marks Dangote's first push into Togo, setting billionaire Aliko Dangote's firm up for competition against Germany's HeidelbergCement, which operates three companies there, and Fortia Cement.
With the completion and commissioning of the Dangote Petroleum Refinery and Fertilizer complex in Ibeju-Lekki, Lagos, Dangote Group will be the largest ammonia producer on the African continent, the release noted. Ammonia is an essential ingredient in the transformation of phosphate into fertilizer derived from phosphates. Under the agreement, Togo will provide access to phosphate resources and the Dangote Group will provide access to ammonia and to the Nigerian market.
The project, in line with the second pillar of the Togo National Development Plan, would enable the production of more than 1 million tonnes of fertilizers derived from phosphates once completed. The cost of the investment is estimated at about $2 billion and is expected to create several thousand direct jobs. Mining development work will start before the end of 2019, it added.
Togolese President, Faure Gnassingbe 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 Dangote 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."
President/CE Dangote Group, Aliko Dangote said, "This partnership is in line with our transformation agenda in creating prosperity and enhancing economic development not only in Togo but also in Affrica. 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."
The two investment agreements reinforce Togo's industrialisation strategy adopted under the 2018-2022 National Development Plan.
5. Stock & Analyst Updates October 08, 2019