Cameroon: Construction of a US$109m Dangote cement plant in Duoala has been halted following an order from the Douala City Council (DCC), raising fears that the 18-month timeline for the construction of the plant may not be met.
DCC delegate Fritz Ntone Ntone halted work on the site following complaints from Ngondo cultural officials. He explained that part of the site allocated for the plant belongs to the DCC and will be used for the construction of an urban park. He added that much of the site is traditionally used as land for the Ngondo cultural celebrations. During the Ngondo General Assembly on 10 March 2012 Sawa Chiefs resolved not to release the land for any reason.
In September 2011 an agreement was signed between the Cameroonian government and Dangote, which authorised the construction of a US$109m cement plant in Douala with a capacity of 1Mt/yr along the shorelines of the River Wouri. The disputed land was contracted from the government through a lease of 30 years. On 13 March 2012 a Dangote delegation from Nigeria announced that the company was ready to renegotiate in order to keep the venture going.
Demand for cement in Cameroon is currently rising rapidly, increasing by 8% in 2011. According to government data the country imported at least 0.5Mt in 2010 but demand is estimated at 4Mt/yr. In addition to Dangote two companies from Korea have also signed investment agreements with the government.
