Begun in April 2010, the construction of a new cement factory by a Nigerian conglomorate, Dangote Group, is nearing completion, with most of the construction work finalised and much of the equipment awaiting installation. Operations are scheduled to commence by the end of the year, with initial annual production of 1m tonnes. This is a significant addition to the 2.5m tonnes/year currently produced by the two existing cement-manufacturing companies, Soccosim and Sehem; not only will the new factory help to meet domestic demand but it will also allow for an exportable surplus to neighbouring countries, where demand for cement is also increasing.

The Senegalese government has provided a range of incentives to attract Dangote's US$1bn investment, which also includes a sugar refinery. These incentives include a 100% tax waiver for all imported project materials and 8,000 ha of free land. The government's main objectives are the achievement of self-sufficiency in cement production and the creation of much-needed jobs: 1,500 direct jobs and 7,000 indirect jobs are expected to be created. Furthermore, by helping to meet the national demand for cement, Dangote's plant should boost construction and the expansion of public infrastructure, one of the government's medium-term priorities. The main challenge for the company is posed by the serious power shortages, which are a major deterrent to foreign direct investment. The factory will build a 30-mw coal-powered station, supposedly for back-up purposes. The minister for mines and industry, Abdoulaye Baldé, has called on industry to disconnect from the grid entirely and generate power independently.