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Dangote Invests N121b on Domestic Sugar Production

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  • Dangote Invests N121b on Domestic Sugar Production

Dangote Sugar Refinery (DSR) Plc, a subsidiary of Dangote Industries Limited, has so far invested N121 billion on its ambitious Sugar for Nigeria Backward Integration Project Plan, which is aimed at developing domestic sugar production capacity through home-grown sugarcane.

Addressing shareholders yesterday at the annual general meeting in Lagos, Chairman, Dangote Sugar Refinery (DSR) Plc, Alhaji Aliko Dangote, said the company has spent N121 billion on equipment, land acquisition, compensation to land owners, consultancy and related services.

According to him, the company has continued to make commendable progress in the implementation of the backward integration project including the payment of N3.25 billion as full payment for land acquisition for the 60,000 hectares Tunga Sugar Project in Nasarawa State and mobilisation of necessary developmental work to site after signing of a Memorandum of Understanding (MoU) with the state government.

He pointed out that despite major setbacks like flood, community relations issues and most recently clashes between host community and Fulani herdsmen that hampered progress, the group’s Savannah Sugar Company remained the only company producing sugar from own-grown sugarcane in the country with more than N30 billion spent so far on purposeful investments in land rehabilitation, infrastructure, field expansion projects and equipment.

He said the company has made further commitment with substantial investments in replanting existing fields and increase factory capacity from its current 3,000tcd to 6,000tcd and addition of a new 12,000tcd factory to cater for expected improvement in cane output and production.

“Negotiations with the government and local communities in Kwara and Niger on land acquisition processes are ongoing, in line with the backward integration sites plan. Project activities will resume in Taraba State when the rain assuages-after issues with the Government and local communities over the Lau/Tau project which has recently been resolved,” Dangote said.

He noted that DSR has continued to outperform its records despite the uncertainties and various socio-economic challenges as it recorded strong growth in sales and profit in 2017.

Key extracts of the audited report and accounts of DSR for the year ended December 31, 2017 showed group turnover of N204.42 billion, 20.4 per cent increase on N169.72 billion recorded in 2016. Profit before tax rose by 173 per cent to N53.6 billion in 2017 as against N19.61 billion recorded in 2016. After taxes, net profit jumped from N14.4 billion in 2016 to N39.8 billion in 2017. Earnings per share leapt from N1.20 to N3.31.

Shareholders yesterday approved distribution of N15 billion as final cash dividend, in addition to an interim dividend of N6 billion earlier paid during the year, bringing the total dividend for the 2017 business year to N21 billion. Shareholders will receive final dividend per share of N1.25 in addition to an interim dividend per share of 50 kobo, representing a total dividend per share of N1.75.

“The board remains focused on engaging more strategies for optimum delivery to all stakeholders,” Dangote said.

In his remarks, Acting Managing Director, Dangote Sugar Refinery (DSR) Plc, Mr. Abdullahi Sule said the company would continue to pursue its target to achieve 1.08 metric tonnes of refined sugar annually in six years and eventually 1.5 million metric tonnes in 10 years.

According to him, the focus of the company remains leveraging on its strengths to maximise every opportunity to generate sales, increase its market share and create sustainable value for all stakeholders.

“Though the business terrain remains very challenging, we remain resilient in the face of the situation and are focused on increasing our market share and customer base as well as the creation of sustainable value for our stakeholders. Our priority in the current year is the achievement of our Sugar for Nigeria Project goals and sustenance of our leadership position by improving efficiency and growing our markets,” Sule said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Investment

Saudi Arabia Aims for $80 Billion Tourism Investment to Fuel Vision 2030 Goals

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Saudi Arabia is embarking on a bold venture to attract up to $80 billion in private investment into its burgeoning tourism industry, a move pivotal to realizing its ambitious Vision 2030 objectives.

Tourism Minister Ahmed Al Khateeb unveiled the kingdom’s aspiration during an interview in Riyadh, emphasizing the imperative role of the private sector in spearheading investment endeavors.

With plans to disburse approximately $800 billion on tourism over the next decade, Saudi Arabia is steadfast in its pursuit to diversify its economy and reduce dependency on oil revenues.

Vision 2030 outlines a trajectory for the kingdom to metamorphose into one of the world’s premier tourist destinations, targeting 150 million annual visitors by 2030, a significant portion originating from overseas.

While the government and sovereign wealth fund have historically fueled tourism development, securing substantial foreign direct investment, particularly from the private sector, emerges as paramount in expediting Vision 2030 initiatives.

The kingdom’s fiscal projections, forecasting deficits until 2026, underscore the urgency of engaging private investors to actualize the ambitious tourism blueprint.

Saudi Arabia, having welcomed 100 million tourists in 2023, predominantly domestic travelers, eyes international markets such as India, China, the UK, France, and Germany for tourist influx.

A new program launched by the Ministry of Tourism aims to streamline investment processes, potentially unlocking $11 billion in private investment, bolstering Saudi Arabia’s tourism trajectory and reshaping its economic landscape.

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CBN Unveils Plan to Settle N1.64 Trillion Treasury Bills in Q2 2024

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The Central Bank of Nigeria (CBN) has announced its strategic approach to managing liquidity and meeting financial obligations by unveiling a comprehensive plan to settle Treasury Bills (TBs) worth N1.64 trillion during the second quarter of 2024.

This initiative, part of the CBN’s Nigeria Treasury Bills Issue programme, aims to regulate the money supply within the economy while effectively managing liquidity dynamics.

According to documents obtained by Investors King, the TBs settlement program is slated to commence on March 7th and conclude on May 23rd, 2024.

The CBN will focus on settling TBs with varying tenors, including N414.29 billion on 91 days, N43.74 billion on 182 days, and a substantial N1.18 trillion on 364 days.

The breakdown of the settlement plan reveals monthly settlements to address maturing TBs. In March, the CBN plans to settle N660.62 billion worth of TBs, followed by N292.17 billion in April and N688.3 billion in May.

Market analysts interpret this move as a testament to the CBN’s commitment to managing financial obligations and maintaining economic stability.

It provides investors with opportunities to engage in short-term financial instruments while contributing to overall liquidity dynamics.

The strategic settlement plan reflects the CBN’s proactive stance in navigating economic challenges and ensuring stability within the financial landscape.

As the apex bank implements these measures, stakeholders will closely monitor their impact on market dynamics and economic indicators, anticipating implications for investment decisions and monetary policy outlooks.

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China’s State-Owned Lenders Allocate $8 Billion to Revitalize Property Market

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General Images Of Residential Property

China’s state-owned lenders have committed a substantial $8 billion in loans to rejuvenate the country’s beleaguered property market, aligning with Beijing’s directives to bolster the sector.

Agricultural Bank of China Ltd. disclosed approving over 40 billion yuan of loans for real estate projects on predefined white lists, signaling a proactive approach towards supporting the housing market’s recovery.

China Construction Bank Corp. also joined the effort, extending 3 billion yuan to five property projects, with plans to greenlight over 20 billion yuan in loans soon.

Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among the institutions offering financing assistance, although the exact loan amounts remain undisclosed.

This initiative follows Beijing’s recent call for local authorities to enhance financing support for developers and curate lists of eligible projects.

In response, the big four state lenders pledged to meet reasonable financing demands from developers and projects identified under the coordination mechanism.

However, China’s property market faces challenges despite these measures. New home sales plummeted 34.2% year-on-year, underscoring the ongoing slowdown.

While existing home transactions surged during the Spring Festival holiday, new home sales remained subdued, prompting a cautious outlook among buyers.

The infusion of $8 billion aims to instill confidence and stimulate activity in the property sector, potentially heralding a gradual recovery amid persisting market uncertainties.

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