Dangote Cement, the pan-African cement producer controlled by Nigerian billionaire Aliko Dangote, has signed a US$1 billion contract with Chinese engineering firm Sinoma Engineering to construct new plants and modernize existing facilities across seven African countries, including Nigeria, Ethiopia, and Cameroon.
The agreement, announced on March 5, will finance the development of new production lines in Nigeria and Ethiopia. In Cameroon, the company is evaluating two options: expanding its existing Douala plant, which currently has a capacity of 1.5 million tonnes per year, or reviving a long-dormant project to build a second 1.5-million-tonne facility in Nomayos, on the outskirts of Yaoundé. The Nomayos project, initially announced in 2015, has remained on hold for more than a decade.
Plans for the Nomayos plant were first disclosed a month before the inauguration of the Douala plant. At the time, Aliko Dangote met then-Prime Minister Philémon Yang to announce the project, which was estimated to cost 88 billion CFA francs and to be completed within 20 months. Site acquisition and environmental and social impact assessments took place between 2015 and 2019, and sources indicate that government clearance was obtained in 2024, though construction has not yet begun.
Industry observers note that any new investment in Cameroon would enter a highly competitive market. Since Dangote Cement’s entry in 2015, the company ended the 48-year monopoly previously held by Cimenteries du Cameroun (Cimencam), a subsidiary of LafargeHolcim Maroc Afrique. Other players include Cimaf, Medcem, Mira Company, Cimpor, Central Africa Cement, Sinafcam Sarl, and Yousheng Cement. A new entrant, Société de ciment du Cameroun, backed by Ivorian billionaire Koné Dossongui, is expected to join the market soon. National cement production capacity now approaches 12 million tonnes per year, while demand is estimated at around 8 million tonnes.
Despite overcapacity, cement prices remain elevated, with a 50-kg bag selling for 5,100–5,300 CFA francs in Douala and Yaoundé. The government and industry regulators cite high costs of imported clinker, while Luc Magloire Mbarga Atangana, Cameroon’s Minister of Commerce, has repeatedly expressed concerns about potential illegal price-fixing among producers.
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The US$1 billion agreement with Sinoma Engineering is part of Dangote Cement’s strategy to strengthen its pan-African presence and modernize operations to increase efficiency and output. The deal will enable the company to expand capacity in key markets while potentially bringing new technology and production techniques to its facilities.
For Cameroon, the decision between expanding the Douala plant or reviving the Nomayos project could reshape the domestic cement market. The expansion would increase output from an existing site, while the Nomayos project could introduce a new competitor in central Cameroon, potentially affecting market dynamics, pricing, and supply chains.
Analysts say the investment reflects broader trends in African infrastructure and construction sectors, where growing urbanization, industrial projects, and housing demand are driving the need for more cement production. By investing in new plants and modernizing older facilities, Dangote Cement positions itself to capture a larger share of this expanding market.
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The company’s moves in Cameroon also underscore the delicate balance between boosting supply and managing prices in a market already characterized by overcapacity. How Dangote proceeds will be closely watched by regulators, competitors, and investors across the region.
