House Reviews US$41M Dangote Cement Investment Agreement

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Mr. Dangote is Africa's richest man and has the largest cement producing company on the continent.

Members of the House of Representatives are reviewing an Investment Incentive Agreement between the Government of Liberia and Dangote Cement Liberia Limited worth over US$41 million  from the DANGOTE GROUP – one of the most diversified business conglomerates in Africa.

The group’s activities encompass cement manufacturing, packing, and distribution.

Aliko Dangote, Africa’s richest man, founded and chairs Dangote Cement, the continent’s largest cement producer.

On Tuesday the House’s Plenary mandated its Joint Committee on Ways, Means, Finance & Development Planning, the Judiciary and Investment, Contracts and Monopolies to probe the agreement and report to Plenary in two weeks.

The House’s decision was prompted by a letter from President Ellen Johnson Sirleaf, urging the Legislature to ratify the agreement.

According to the letter from the President, the duration of the agreement is 15 years, and it will include financing, construction, development, and operation of a clinker grinding unit with cement packing and dispatch plant of 1,000 tons per day, expendable to 2,000 tons per day capacity, within the Freeport of Monrovia.

The President wrote: “Dangote Cement Liberia Ltd is registered under the laws of the Republic of Liberia, and its parent investor, Dangote Cement Plc, is a fully integrated cement investor in Nigeria, Benin, Ghana, Senegal, South Africa, Zambia, Tanzania, Ethiopia, Republic of Congo and Gabon with total existing production capacity of 15.7m tons per annum and new production projects in development with 17.7m tons per annum additional capacity. The investor operates Obajana Cement Plant (OCP), the largest cement plant in sub-Saharan Africa with a capacity of 7.7m Mtpa.”

She added: “Hon. Speaker, when ratified, this project will create jobs during its construction operations and expansion phases. The investor shall also provide a scholarship for study in Liberia, through an investor grant of US$15,000 annually.

“The scholarship beneficiaries will be students who are Liberian citizens and residents of the district in which the terminal is located. The investor is also expected to assist Government in the maintenance of the roads leading to its Port terminal.”

The President further said: “Mr. Speaker, I am glad that after two years of persistent effort, Liberia will finally join the many other African countries that are benefiting from an investment by Africa’s most successful corporate entrepreneur.

“I, therefore, urge the Legislature to ratify this Agreement, which will bring many key benefits to our people including: stabilizing and making the prices of cement affordable; ensuring the constant availability of cement on the local market; creating employment opportunities; and contributing immensely to the economic recovery and development programs of the country.”

11 COMMENTS

  1. Dangote is not only Africa’s richest man, but also the richest black man of African descent on the planet.
    At least Africa has something to be proud of……one of their own is investing in Liberia

  2. The investment is small per the years it is asking to be granted operations in Liberia. Besides, the location of the plant should be outside the Freeport of Monrovia. $41,000,000.00 is not lot of money and our law makers should reject this investment package. It is really small….I know Liberians desired opportunities to create jobs, but law makers need to set bench marks because $41 million to construct a factory and start production, create distributions outlets is small money. I think with the project being housed in the Freeport of Monrovia, create the impression that this will not be manufacturing, but rather, the cement will be manufactured abroad and imported as a completed manufacture product to be sold on the Liberian market. REJECT, REJECT.

    • J.A.A; I should remind you; “the joining of a thousand miles begins with one step.” As per the article, the cement plant will expanded, with higher capacity. You are however right about the location of the cement plant. For Heaven’s Sake; not the Freeport of Monrovia. There’s too much moisture at the Port. That could become a very big problem for the finished product-cement, it might get caked up before it even leaves the manufacturing plant. Besides, there’s the problem of corrosion, caused by salty moist ainor from the Tropical Atlantic Ocean. The cement plant should be located a distance away from the ocean. Rust can become a major problem. Think it all over…

    • NB. Corrections: I should have written, “The Journey of a thousand miles begins with one step.” The cement plant will be expanded, with higher capacity. There’s the problem of corrosion caused by the salty MOIST-AIR from the Tropical Atlantic Ocean. Pardon!

  3. So many times President Sirleaf has talked about the importance of decentralization in Liberia. Decentralization comes in many forms: political decentralization is one form which is highly recommended and overdue in Liberia to minimize the imperial presidency that wields too much power that we have in Liberia’s unitary system of government.

    However, we desperately need economic decentralization and economic diversification to discourage many unemployed Liberians from migrating to the already overpopulated city of Monrovia or Montserrado County for non-existing jobs.

    There are port cities in Buchanan, Greenville, or Harper where these companies like the Degonte Cement factory and others that are geared to be near a seaport could be located instead of the already congested area of the Free Port in Monrovia.

    Many unemployed youths living in the other counties need vocational job training programs like: carpentry, welding, plumbing, machinery, electrical, auto repair, masonry, computer repair, trailer truck operator, machine operator, building contractor skills, etc.. to become productive citizens in the job market of Liberia.

    The more we create jobs, coupled with educational and medical facilities in the rural counties, the less unemployment and crime we will have in Liberia.

    Let Degonte Cement or others who want to do business in Liberia know that Liberia is no longer going to settle for less.

    • Good points Alpha. That’s exactly what our visionless senators and representatives supposed to be doing, lobbying for businesses and industries like this cement factory to be established in their home counties, instead of everything staying in that one Monrovia. Like you said, that’s how the country will decentralize but mainly provide jobs for people in other areas outside of Monrovia. But as our people continue to grow in their understanding of how these things work or supposed to be, so will they be booting those myopic and self-seeking people from office every election cycle one by one.

  4. $41,000,000 is too small and on top of that we will give this man a space at our main port for 25 years?

    I am not impress with the so-called $15,000 local scholarships. Let him pay his fair share of taxes to the government and the government.

    They should not be allowed to manufacture the cement in Nigeria for retail sale in Liberia.

  5. The ingredients used for making cement are limestone, that is calcium carbonate (CaCO3) and clay, which consists of silica (SiO2), alumina (Al2O3) and ferric oxide (Fe2O3).
    Manufacture of cement:
    The following steps are involved in the manufacture of cement.
    1. Limestone and clay are crushed to a fine powder.
    2. They are blended in the desired proportion.
    3. The mixture is poured into the upper end of a slow-turning cement kiln and heated to about 15000C.
    4. The following reactions take place inside the kiln.
    Calcium carbonate decomposes to form calcium oxide which combines with alumina and silica.
    Note that chemically, cement is a mixture of calcium aluminate and calcium silicate (formed on adding water).
    5. The mixture (cement) solidifies into limps about the size of a pea, called clinkers.
    6. Clinkers are then mixed with gypsum (it delays the setting of cement).
    7. These are then ground into a fine powder

    NOTE: I am a Liberian. My educational background (chemical engineer & many more education in other technical areas ), I can produce cement and sell bag of cement very cheap to build Liberia. It’s all chemistry, unit operation, kinetics, heat transfer, thermodynamics, physics etc…and I master them very well. It is my intend to move back home after 30 plus years in the west

    • Mr. K; thanks! You sound very interesting. However, you should be mindful with your intention to produce CEMENT. It was the Romans ie the Italians who first discovered/invented the product known as CEMENT today. Since then they ‘ve claimed it as their own. No matter where CEMENT is produced in the World, you must pay them(Italians) a fee; or they will put you out of business by whatever means. They are dare serious about it. When it comes to the CEMENT business, there is always an Invisible Partner. Just think about it; Mr. K. This is a hint to the wise. It’s an open secret in the U.S. 10% of every contract that involves CEMENT must be paid to the guys who believe they own CEMENT. No kidding about it. You pay them or else…

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