Dangote Industries Limited and the Government of Togo have concluded an agreement to develop and transform Togolese phosphate into phosphate fertilisers for the West African sub-region; in a bid to improve consumption of the product in Africa.
Ammonia is an essential ingredient in the transformation of phosphate into fertiliser derived from phosphates. Under the partnership, Togo will provide access to phosphate resources and the Dangote Group will provide access to ammonia and to the Nigerian market.
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The project, in line with the second pillar of the Togo National Development Plan, should enable the production of more than 1 million tonnes of fertilisers derived from phosphates once completed. The cost of the investment is estimated at about $2bn and is expected to create several thousand direct jobs.
Dangote Group has also established a cement manufacturing plant with an annual capacity of 1.5 million tonnes in Lomé. This plant will use clinker from Togo and Nigeria and will meet both local and neighbouring countries' demand, the release noted. Construction of the Lome plant is billed to start in the first quarter of 2020 and its commissioning scheduled to take place before the end of 2020. The investment is estimated at $60m and is expected to create 500 direct jobs.
Togolese President, Faure Gnassingbé said: "The structural transformation of our economy is the main objective we have set ourselves in the context of the 2018-2022 NDP. By processing our phosphate we will not only create jobs but we will also be able to provide our farmers with good quality fertilisers at an affordable cost. Having an industrial investor like Alhaji Dangoté shows that our efforts to improve the business climate are paying off. We intend to continue in this dynamic for the well-being of Togolese men and women."
President/CE Dangote Group, Aliko Dangote added: "This partnership is in line with our transformation agenda in creating prosperity and enhancing economic development not only in Togo but also in Africa. In addition, the Dangote Group is determined in supporting the Government of Togo in its industrialisation strategy aimed at creating jobs for its citizens and making Togo an attractive investment destination.’"
The two investment agreements reinforce Togo's industrialisation strategy adopted under the 2018-2022 National Development Plan.