Wednesday, 2 April 2014

Zambian Laws Stall Dangote's $400m Business

Zambian Strict Laws Interfere Dangote's $400m Business
Operations have been stalled at the $400 million Dangote Cement plant in Zambia after it came in contradictions with the country’s environmental law.
Zambia Environmental Management Agency (ZEMA) banned the firm, known locally as Dangote Industries Limited, from further activities after it illegally tapped water from a local stream in Masaiti district, where the plant is based.

ZEMA slammed the hammer in January because the firm needed authorisation, before diverting the water.
However reprieve has come for the company following the intervention Commerce, Trade and Industry Deputy Minister Miles Sampa, who has urged ZEMA to lift the ban.

Sampa said the ban slapped on Dangote was delaying the development of the cement plant which is situated in Masaiti.

He said ZEMA should have stopped the company from getting water from the stream instead of banning it from further work.

Mr Sampa said such acts were frustrating the investor who had already put in a lot of money in the cement production plant.

It would be added that the $400 million would create more than 1,000 jobs for the local people once commissioned in July this year. It is currently completed by approximate 92%.

Dangote Cement in Nigeria has posted a record profit after tax equal to N210.2 billion for the company and N201.2 billion for the group.

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