Dangote to seek intervention on Oromia order

Dangote Cement Plc is to seek intervention regarding the state of the Ethiopian state of Oromia's order calling on cement makers to hand over control of some parts of their businesses to local young people, according to a report by Bloomberg.

Oromia state’s East Shewa Zone administration wants the Nigerian company to outsource its pumice, sand and clay mines to youth groups or be responsible for “any problems” that may arise, according to a letter from the authority to Dangote that was seen by Bloomberg and verified with a representative of East Shewa’s administration. The regional government sees the transfer of jobs in pumice production as a way to ease youth unemployment and quell unrest, according to the document.

Any mismanagement of mining infrastructure including buildings and excavators could “lead to total breakdown of our business,” Dangote Executive Director Edwin Devakumar said in an interview at the company’s headquarters in Lagos. The cement maker will write to the federal government this week to ask for intervention in the matter and will consider shutting the 2.4Mta plant in Mugher, about 90km north of Addis Ababa, as a “last option” if this fails, he said.