Connect with us

Company News

Dangote Cement Boosts Sub-Saharan Africa’s Economic Development

Published

on

Dangote Cement - Investors King

Operating in 10 African countries, Dangote Cement has significantly boost Sub-Saharan Africa Economic Development and play major roles in attracting Investors and job creation.

Sub-Saharan Africa is populated by more than half a billion people, and rapid urbanisation is creating challenges in the areas of housing, roads, railways, power supply, dams and water pipelines – aspects of infrastructure that are critical to the well-being of the population.

This situation indicates that cement and concrete will play a major role in construction technology in Africa, an aspect that makes the continent an attractive destination for investors.

The Dangote Group has taken cognizance and advantage of the cement demand in Africa by investing in 10 sub-Saharan counties like Nigeria, Senegal, South Africa, Cameroon, Ethiopia, Tanzania, Zambia, Ghana, Congo, and Sierra Leone.

Remarkably, the Dangote Cement plant has successfully operated in Senegal in the last five years, producing 32.5 and 42.5-grades, thereby offering the domestic market higher-quality cement at competitive prices.

The company’s 1.5Mta factory located in Pout, about 60km from Dakar, was commissioned at the end of December 2014 to take advantage of the geographical strategic location, strong demand and abundant limestone deposits.

Country Manager, Dangote Cement, Senegal, Luk Haelterman, said: “before our entry, the domestic market was almost entirely made up of 32.5-grade cement. Our plant produces 42.5-grade cement, thereby offering the market higher-quality cement at a competitive price, which the construction industry urgently needs.”

Dangote Cement Senegal’s integrated plant is modern, fuel-efficient that uses the latest technology to produce high-quality cement. This enables the company to compete very effectively in a Sub-Saharan cement industry that is fragmented and characterised by smaller-scale operators with older technologies.

Haelterman described Dangote Cement’s investment in Senegal as one of the biggest foreign direct investments by an African company, which is an indication of its strong belief in the future growth of its economy.

He said the market has potential for growth for both local consumption and export, despite being saturated by other cement brands, saying, “apart from capturing the local market in Senegal, we also now export cement to neighbouring countries of Mali, The Gambia and Guinea-Bissau.”

Haelterman attributed the company’s outstanding performance in Senegal to stringent quality assurance processes, which were deployed to ensure that customers get high-quality products that meet all the required technical standards.

According to him, Dangote’s introduction of the 42.5-degree brand of cement to the major market in Senegal upon entry has enabled the company to gain the desired market share in the country.

Luk also disclosed that Dangote Cement Senegal has developed a culture of supporting local employees and prioritising local hiring, which allows local country employees have the necessary knowledge, experience, and support to take up key roles within the company.

He said the policy aims to gradually reduce the number of expatriates employed by the business by enhancing the skills and capacity of Senegalese employees to take up leadership positions.

“We have ensured that our image has been aligned with two key principles from day one: maintaining high quality, and taking a local approach in everything that we do,” he said.

Human resources manager, Dangote Cement, Senegal, Waly Diouf, said the company takes training and development of employees as a priority. “Today, Dangote Senegal has about 800 employees. We make sure that we invest heavily in the training and development of employees. We have a programme, which enables us to boost the skills of local staff at all levels. Dangote Cement Senegal is one of the best plants in Africa. This consistent training of indigenous manpower has made our plant one of the best in Africa ” he disclosed.

Chief finance officer, Dangote Cement, Senegal, Ousmane Mbaye, said the company has contributed significantly to the development of Senegal’s economy, saying, “Dangote Senegal started operation in Senegal in 2015, and between 2015 and 2019, the company has contributed heavily into the Senegalese government treasury, thereby assisting in economic development.”

Head of mines, Dangote Cement, Senegal, Leyti Ndiaye added that “our job is to supply raw materials to the plant and make sure that blending of the limestone is done correctly. We operate under very strict environmental regulations. As a company, we have a sustainable environment management plan so as to reduce environmental degradation during operation as well as restoration of degraded lands after final mine closure.”

Chief executive officer, National Sector Mining Company, Ousmane Cisse commended Dangote Cement for investing massively in the Senegalese economy. “I am very proud to have Dangote Cement in Senegal. Dangote has been able to satisfy the Senegalese cement market since its inception in 2015. When Dangote arrived here, there were two players in the market. Dangote brought quantity and quality products through the introduction of 45.2R. Dangote has helped cement consumers in Senegal to access quality cement products.

“The company is also satisfying markets in the surrounding countries. When you visit Dangote, you will discover that most of the employees are Senegalese. The company has employed Senegalese and ensure adequate capacity building for everybody,” he stated.

The best practices adopted by the Dangote Cement Senegal Plant over the past five years have boosted its production process and quality of its products, with a corresponding positive impact on the economy of the country, Sub-Saharan Africa and the continent as a whole. This is a plus for development.

Dangote Cement has a production capacity of 48.6 million tonnes per year across 10 countries in Sub-Saharan Africa. The Group has integrated factories in seven countries, clinker grinding plant in Cameroon, and import and distribution facilities for bulk cement in Ghana and Sierra Leone. Together, these operations make the Group the largest cement producer in Sub-Saharan Africa.

Based in Nigeria, the Group operates in many of Sub-Saharan Africa’s key cement markets, helping the continent become self-sufficient in this basic commodity. In 2020, it started shipping clinker to West and Central Africa from Nigeria. Its regional strategy stated that it look for markets that have ample limestone, thriving economies, growing populations, and a pressing need for housing and infrastructure.

Continue Reading
Comments

Company News

Dangote Refinery Sells Petrol At N990 Per Litre to Trucks

Published

on

Dangote Refinery

Dangote refinery has finally announced the price of premium motor spirit (PMS), popularly known as Petrol, following months of back and forth.

The company said it sells to domestic marketers at N971 per litre into ships and N990 into trucks, according to a statement signed by Anthony Chiejina, Group Chief Branding and Communications Officer and released on Sunday evening.

“Post deregulation, NNPC set the pace by selling PMS to domestic marketers at N971 per litre for sale into ships and at N990 for sale into trucks. This set the benchmark for our pricing, and we have even gone lower to sell at N960 per litre for sale into ships while maintaining N990 per litre for sale into trucks”, the company said in the statement released on its X page.

On a series of accusations and counter-accusations from IPMAN, PETROAN, and other associations, Dangote refinery said it is impossible to land petrol at a lower price than Dangote refinery’s current price, except they are importing substandard products.

“Both organisations claim that they can import PMS at lower prices than what is being sold by the Dangote Refinery. We benchmark our prices against international prices, and we believe our prices are competitive relative to the price of imports.

“If anyone claims they can land PMS at a price cheaper than what we are selling, then they are importing substandard products and conniving with international traders to dump low quality products into the country, without concern for the health of Nigerians or the longevity of their vehicles. Unfortunately, the regulator (NMDPRA) does not even have laboratory facilities which can be used to detect substandard products when imported into the country.”

The company claimed it started selling at the stated rates without knowing the exchange rate that would be used to pay for the crude purchased.

Meanwhile, the company has said an international trading company rented a depot facility close to its refinery with plans to start blending substandard products and dump them into the Nigerian market to compete with Dangote refinery’s better quality.

“This is detrimental to the growth of domestic refining in Nigeria. We should point out that it is not unusual for countries to protect their domestic industries in order to provide jobs and grow the economy. For example, the US and Europe have had to impose high tariffs on EVs and microchips in order to protect their domestic industries.”

“While we continue with our determination to provide affordable, good quality, domestically refined petroleum product in Nigeria, we call on the public to disregard the deliberate disinformation being circulated by agents of people who prefer for us to continue to export jobs and import poverty.”

Continue Reading

Company News

BUA Foods Revenue Surges 104%, Hits N1.07 Trillion Amidst Rising Costs

Published

on

BUA Foods Plc, one of the fastest-growing food companies in West Africa, grew revenue by 104% in the period ended September 30, 2024 to N1.070 trillion from N524.48 recorded in the same period in 2023.

The company’s cost of sales also inched higher to N736.975 billion, a 116% from N349.648 billion filed in the corresponding period of 2023 while gross profit rose by 82% to N333.820 billion.

BUA Foods spent 45% more on selling and distribution expenses at N29.319 billion in the period under review from N20.273 billion.

Also, more money was spent on administration as administrative expenses jumped 84% from N7.913 billion to N14.545 billion. During the period, the company spent N43.862 billion on operating expenses, representing a 56% increase from the N28.185 billion spent in 2023.

Still, the 104% increase in revenue bolstered operating profit by 101% to N315.126 billion from N156.883 billion in 2023.

Loss due to foreign exchange fluctuation dragged on the company’s profit before income tax in the first nine months of the year as N87.961 billion was lost due to Naira devaluation to contain profit before tax at N215.657 billion.

Profit after tax increased by 91% from N105.618 billion in 2023 to N201.389 billion.

Commenting on the results, Engr. (Dr.) Ayodele Abioye, the Managing Director, said “We are thrilled to have sustained a remarkable growth trajectory, underscoring the impact of our strategy, innovative product development, and steadfast commitment to quality, even in the face of a challenging business climate.

“Revenue grew by 104% to N1.07 Trillion compared to the same period last year, while our gross profit stands at N333.8 billion, reflecting a growth of 82%. We saw the benefits of our production capacity expansion and product innovation, as we witnessed an 11% growth in aggregate volume which has further strengthened our position within the industry.

“Looking ahead, we will remain steadfast in addressing current food supply challenges by leveraging newly commercialized supply chain assets across our business divisions. We would maintain focus on driving internal efficiencies for business growth towards delivering long-term shareholder value.

“We thank our stakeholders, particularly our customers, and consumers for their love for the brand even as we continue to nourish lives.”

Continue Reading

Company News

Dangote Urges NNPC, Marketers to Halt Petrol Imports and Source Locally from Lagos Refinery

Published

on

Aliko Dangote - Investors King

The founder and Chief Executive of Dangote Group, Aliko Dangote, has urged the Nigerian National Petroleum Company (NNPC) and independent oil marketers in Nigeria to halt petrol imports and source the product from his Lagos refinery.

Dangote made this appeal on Tuesday at the State House, Abuja, while addressing Nigeria’s fuel scarcity issue after a meeting with President Bola Tinubu.

According to the business mogul, the country should not rely on petrol imports when his refinery has over 500 million litres in storage.

Investors King reported that oil dealers in Nigeria resumed importing petrol from abroad, claiming Dangote’s refinery could not meet demand. The marketers said they turned to foreign refiners to avert fuel shortages.

During the press briefing at the State House, however, Dangote emphasized that he should not be blamed for the scarcity or the long queues at petrol stations, as he is only a producer, not a retailer.

Dangote revealed that the NNPC’s reluctance to buy from his refinery costs him money daily.

He explained, “We are producers. I have a refinery. I’m not in the business of retail. If I were, then you could hold me responsible. But what I’m saying is that the retailers should please come forward and pick up the supply. If they don’t, what do you expect me to do? There is nothing I can do.”

“I expect either the NNPC or marketers to stop importing and collect the supply we have here. Keeping millions of litres in storage costs me daily,” Dangote added.

Fuel scarcity has plagued Nigeria since Bola Tinubu announced the end of the fuel subsidy upon assuming office. Despite the establishment of Dangote Refinery in Lagos, Nigerians hoped that petrol scarcity would soon be a thing of the past. While the refinery promised 650,000 barrels per day, the problem persists with no end in sight.

Continue Reading

Trending