One of Africa’s largest conglomerates, Dangote Group has confirmed plans to commence dairy farming in 2018, with milk production to begin in 2019.
The manufacturing conglomerate is looking to invest about $800 million in the production of milk, the company’s Group Executive Director Mr. Edwin Devakumar told Bloomberg in an interview this week.
He revealed that the group is fine-tuning plans to grow its agro-sector business interests in the coming years and would look to invest about $4.6 billion towards achieving this expansion drive.
Part of this massive, agri-focused expansion plan includes a $3 billion investment in boosting its sugar and rice production across Africa. It plans to grow its sugar production capacity substantially to 1.5 million tonnes, from its current 100,000 tonnes. Rice production capacity will also grow by 1 million tonnes.
Dangote is reportedly also keen on investing about $4 billion in its cement business—its most profitable interest—over the same period as it seeks to consolidate its position as one of the continent’s biggest cement producers.
The company would be expected to raise such massive funds via debt or capital, or a mix of both.
The Dangote Group is one of Africa’s largest conglomerates with interests in cement manufacturing, agriculture, soft drinks, and oil.