Nigeria’s Dangote Group is set to explore Togo’s significant phosphate reserves, according to an exclusive deal between the conglomerate and the tiny West African country.
What we know: A report seen by Nairametrics noted that the newly signed deal would enable Dangote Group to manufacture fertiliser in Togo with phosphates mined there. Note that prior to this time, Togo’s phosphate reserves were exploited and exported in its raw form.
To this end, therefore, Dangote Group will set up operations in Togo which will not only manufacture fertiliser, but also cement. Finished goods would be exported to the rest of the West African region after meeting Togolese demands.
More Details: The projects will reportedly cost a whopping $2 billion although it was not expressly stated where the financing will come from. About $60 million will be set aside for the cement factory, the construction of which has been slated to commence within the first quarter of next year. The cement factory is expected to start production before the year 2020 comes to an end.
With this development, Dangote Group is now set to compete with Fortia Cement and Heidelberg Cement, two players that are already dominating the cement market in Togo. It is, therefore, uncertain at this point how well Dangote can compete against them. However, judging by Dangote Group’s success in Nigeria and elsewhere, it is safe to assume that it can easily replicate the same success in Togo.
Dangote Group is one of the most diversified conglomerates in Nigeria and Africa at large. The Group’s subsidiaries include the likes of Dangote Cement Plc, Dangote Sugar Refinery Plc, NASCON Allied Industries Plc, etc. Already, the Group has operations in East Africa (Ethiopia), Southern Africa (Zambia), and of course in other West African countries besides Nigeria.