Dangote Refutes Impact of Border Closure on Performance

• Dangote Refutes Impact of Border Closure on Performance

Aliko Dangote, the President, Dangote Group, has refuted reports that the ongoing border closure policy of President Muhammadu Buhari was responsible for a 49 percent decline in Dangote Cement’s performance in 2019.

In a statement issued on Thursday, Dangote said the border closure was the best for the nation at this moment, saying it would help stimulate local production and improve job creation across key sectors.

He explained that Dangote Cement has terminals across Africa, therefore, the border closure could not have impacted negatively on its performance, especially knowing the borders were closed on August 18, 2019.

The statement reads, “The company’s investment across Africa is also bearing the desired results as pan-African sales volume grew in the year 2019, hitting 9.6Mt from 9.4Mt.

“Dangote Cement Plant, Mtwara, Tanzania, recorded an increase of 94 per cent increase in volume within the review period. Dangote Cement Plant, Pout, Senegal put up a remarkable performance with sales up more than 100 per cent of rated capacity.”

Commenting on the company’s performance for the year ended December 31, 2019, the Group Chief Executive Officer, Joe Makoju, said: “Dangote Cement maintained strong financial performance despite a low growth environment, pricing pressure and increasing competition in key markets.

“The Nigerian operations maintained volume and revenue performance in a challenging environment. Export sales were affected by the border closure in the second half of 2019.”

He further stated that “Looking ahead, I expect an increase in volumes in 2020 as we commence clinker exports via shipping from Nigeria.

“Pan-Africa volumes were slightly up, notably supported by Tanzania and Senegal. I am glad to report that Tanzania contributed positively at EBITDA level.

“In 2020, I believe Dangote Cement will see an increase in profitability in pan-Africa driven by higher volumes and further efficiency improvements.”