Dangote Cement May Quit Its Production in Ethiopia over Mining Dispute

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East Shewa Zone administration wants Dangote Cement Plc to outsource its pumice, sand and clay mines to youth groups or be responsible for “any problems” that may arise.

By Emele Onu and Nizar Manek (Bloomberg) |

Dangote Cement Plc, controlled by Africa’s richest man, Aliko Dangote, said it may shut its operations in Ethiopia if authorities in the central state of Oromia don’t reverse an order to cement makers to hand over control of some parts of their businesses to local young people.

Oromia state’s East Shewa Zone administration wants the Nigerian company to outsource its pumice, sand and clay mines to youth groups or be responsible for “any problems” that may arise, according to a letter from the authority to Dangote that was seen by Bloomberg and verified with a representative of East Shewa’s administration. The regional government sees the transfer of jobs in pumice production as a way to ease youth unemployment and quell unrest, according to the document.


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Any mismanagement of mining infrastructure including buildings and excavators could “lead to total breakdown of our business,” Dangote Executive Director Edwin Devakumar said in an interview at the company’s headquarters in Lagos, Nigeria’s commercial hub, last week. The cement maker will write to the federal government this week to ask it to intervene and will consider shutting the plant in Mugher, about 90 kilometers (56 miles) north of Addis Ababa, as a “last option” if this fails, he said. The company listed Ethiopia as one of its three “key” markets, along with Nigeria and South Africa, in a presentation in May.

There’s “no intention to displace any investment,” so long as Dangote is “working by the laws and regulations in our region and country,” Tekele Uma, head of Oromia’s transport authority, said by phone. “If anyone’s complaining about Oromia regional state, we’re ready to talk with them. Any investment can come. Any investment can go.”

Motuma Mekassa, Ethiopia’s minister of mining, petroleum and natural gas, said by phone he wasn’t aware of an attempt by Dangote to reach his office.

Continue reading this story at Bloomberg
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Chinese-led Waste-to-energy Project to Turn Ethiopia’s Biggest Dump into Economic Driver

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(Global Times)―A Chinese-led Reppi Waste-to-Energy project will start generating power in September in Ethiopia’s biggest garbage dump, which will help fuel the country’s rapidly growing economy.

The Reppi Waste-to-Energy project in Kolfe Keranio, a sub-city of the capital Addis Ababa, is slated to be opened in September, China’s People’s Daily newspaper reported on Monday.

The project is a significant part of the cooperation between China and Ethiopia, as the country is seeking to develop its green energy capacity, Azeb Asnake, CEO of Ethiopian Electric Power told the People’s Daily.

The Reppi dump, also known as Koshe, meaning “dirty” in the country’s most widely spoken language Amharic, is the biggest dump in the country and has been polluting the water and soil nearby for more than 50 years.


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According to the People’s Daily, the Ethiopian government invested $100 million in the waste-to-energy project and the China National Electric Engineering Corporation started construction work in September 2014.

The project will be able to burn 1,280 tons of waste each day which will produce electricity in its power plant, the newspaper report said.

“More than 200 waste-to-energy power plants have been built in China, which has provided great experience and technology for the Reppi project,” according to a China National Electric Engineering Corporation employee, who added that all the equipment used in the project was made in China.

Ethiopia is one of Africa’s fastest growing economies but its development has left some behind, Reuters reported. At least 115 people were killed in a landslide at the Reppi dump in May, home to hundreds of people who make a living by scavenging through the garbage, according to Reuters.

Source: Global Times
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