Nigeria becomes a net exporter of cement – thanks to the Dangote Group.
(Press Release) – Following the increase in its production capacity, Dangote Group subsidiary – Dangote Cement Plc – has ended Nigeria’s dependence on cement importation as the company exported 0.4 million tons of the product to other countries in 2016.
In its 2016 full year audited results presented on the floor of the Nigerian Stock Exchange (NSE) in Lagos on Monday, Dangote Cement sold 8.6 million metric tons of cement outside Nigeria – an increase of 54 percent in comparison to what was sold in 2015.
Nigeria – Africa’s largest economy – has been a net importer of cement.
By 2011, Nigeria was one of the world’s largest importers of cement, buying 5.1 million metric tons of foreign cement – at huge expense to the country’s balance of payments.
The company’s Pan-African cement plants continued to perform well, contributing significantly to its turnover and profitability.
While presenting the results, company executive, Onne van der Weijde, assured the investors of better returns on their investment in the Dangote Cement.
According to van der Weijde, the company is projecting much higher profitability in Nigeria in 2017. “I am confident that we will deliver an even stronger performance in 2017 as we increase market share and extend our reach across Africa” he added.
Africa’s leading producer of cement
The economic challenges notwithstanding, Dangote Cement achieved sales and revenue growth of 25 percent and consolidated its position as Africa’s leading producer of cement.
While sales from Nigerian operations increased by 13.8 percent to nearly 15.1 million metric tons at a growth rate far higher than the country’s gross domestic product (GDP), which fell in 2016, its total revenue leaped by 25.1 percent to NGN615.1 billion (US$1.93 billion).
Dangote Cement earnings per share increased by 4.5 percent to NGN11.34 (US$0.04) and the dividend payout to the shareholders also increased significantly by 6.3 percent per share.
Dangote Cement pan African operation presently produces nearly 46 million metric tons per annum (MTA) and is expected to increase to 76.5Mta by 2020.
It is a fully integrated quarry-to-customer producer with production capacity of 29.25Mta in Nigeria – the Obajana plant is the largest in Africa with 13.25Mta of capacity across 4 lines.
The company has invested several billion dollars to build manufacturing plants and import/grinding terminals across Africa. Its operations are in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.0Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.7Mta import), South Africa (3.3Mta), Tanzania (3.0Mta), and Zambia (1.5Mta).
Source: Dangote Cement