Dangote Signs $2 billion Loan Deal with Industrial Commercial Bank of China

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Africa’s richest man, Aliko Dangote has signed a $2 billion loan deal with the Industrial Commercial Bank of China Limited to build two more cement plants in Nigeria, Reuters quotes him as saying on 12 April 2016. China Export and Credit Insurance Corporation is also said to be part of the deal.

“The interest rate is okay, quite favourable with me. ”It is for my two cement companies that we are establishing in Nigeria” Reuters quotes Dangote as saying.

Dangote who already owns the largest cement plant in Africa is seeking to further expand production and dominate cement production in Africa.

The Chairman of the Dangote Group on 11 April 2016 announced the start of the building of a $1 billion 2-line six million metric tonnes capacity cement plant in Okpella in Edo State, Nigeria.

Money Issues could not confirm where the second $1 billion cement plant will be located or if the Edo State plant is going to be expanded further now that he is assured of a $2 billion loan to support the project.

The loan is coming at a good time for Dangote since currency restrictions by the Central Bank of Nigeria (CBN) could have slowed progress on the plant. The loan from China will guarantee foreign exchange required to acquire the necessary materials to complete the plant on time which is expected to create thousands of jobs in Edo State and environment.

According to information on Dangote Group’s website, Dangote   operates three cement manufacturing plants in Nigeria namely the Obajana Cement Plant, whch is the largest cement plant in sub-Saharan Africa with a current capacity of 10.25 million MT and an additional 3.0 million MT planned; the Benue Cement Company Plc with 4.0 million MT of production capacity per annum and a third plant in Ibese, which was commissioned in February 2012, with a capacity of 6.0 million metric tonnes per annum.

Dangote Cement also owns six cement import terminals in Lagos and in Port Harcourt in Nigeria and one in Ghana through which it imports and bags bulk cement. The import terminals in Nigeria have a combined capacity of 6 million MT per annum, while Ghana’s facility has a capacity of 3 million MT per annum. Dangote Cement has also established cement plants in Zambia, Senegal, South Africa, Ethiopia and plans to further expand to other African countries.