Dangote Cement threatens to stop operations in Ethiopia over youth scheme

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Ethiopia: Dangote Cement has threatened to stop its operations at its Mugher cement plant in Oromia if the local government doesn’t cancel an order forcing the cement producer to give control of some of its business to local young people. Oromia state's East Shewa Zone administration has asked the Nigerian cement company to allow cooperatives of unemployed young adults to run part of its mining businesses or face ‘any problems’ that may arise, according to the Star newspaper. The state scheme is intended to reduce youth unemployment and to relax local social tensions following riots in 2016. Dangote Cement was one of several businesses that were attacked in the unrest.

However, Dangote Cement’s executive director Edwin Devakumar warned that any ‘mismanagement’ of its mining business could undermine its entire business. The cement producer intends to write to the federal government to ask for intervention otherwise it will consider shutting its Mugher plant as a last resort.

Last modified on 28 June 2017

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