Dangote cement has announced plans to invest $1 billion over the next four years to expand its cement production capacity across Africa, as demand for building materials continues to rise amid increasing infrastructure development across the continent.
The expansion plan was disclosed during an investor conference call in Lagos by the company’s Chief Financial Officer, .
Expansion Across Key African Markets
According to the company, the investment will help strengthen its footprint in several African countries, including and , among others.
Fapohunda said the expansion would increase Dangote Cement’s production capacity by about 45 percent, raising total output capacity to 80 million tonnes over the next four years.
The company noted that the expansion aligns with its long-term strategy to meet growing cement demand linked to infrastructure projects across the continent.
Financing Strategy
The $1 billion investment will be financed through a mix of funding sources, including:
- Operating cash flow
- Supplier credit
- Commercial papers
- Bonds
- Bank loans
This diversified financing approach is expected to support the company’s expansion without putting excessive pressure on its balance sheet.
Rising Infrastructure Demand in Africa
Demand for cement across sub-Saharan Africa is projected to increase as governments ramp up spending on roads, ports, housing, and energy projects.
According to the , countries across the region require about $170 billion annually to meet infrastructure development needs.
Major economies such as and are prioritising large-scale construction projects, which are expected to boost demand for cement and other construction materials.
Export Growth Strategy
Beyond expanding production, Dangote Cement is also increasing its export capacity.
The company plans to grow exports of cement and clinker to 10 million tonnes by 2030, up from 1.4 million tonnes recorded in 2025.
Strong Market Performance
Shares of Dangote Cement closed at ₦809 at the end of trading in Lagos and have gained 33 percent this year, outperforming the , which recorded a 26 percent increase over the same period.
The company also reported strong financial results, with net income more than doubling to ₦1 trillion for the year ended December 31, despite a slight 0.9 percent decline in sales volumes to 27.5 million tonnes.
Previous Expansion Deals
Recently, signed a $1 billion agreement with for the construction of 12 new cement plants and expansion of existing facilities across Africa.
The company is also preparing to launch a $1 billion investment project in , which will include cement manufacturing, coal mining, and power generation.
The investment forms part of the broader expansion strategy of the to deepen its industrial presence across Africa.
