The Dangote effect

Cement king
Cement , which is the cash cow of the group, has experienced rapid growth over the last few years. The government’s ban on cement imports has encouraged big local manufacturers such as Dangote Cement, Lafarge and the BUA Group to increase their capacity.

Dangote Cement alone currently has about a 60% market share. The construction boom in the country has increased the demand for cement, even though it is still perceived to be low per capita when compared to other developing and advanced countries.  

Dangote Cement’s projects in Senegal, Sierra Leone, Cameroon, Ethiopia, Zambia and South Africa are expected to be commissioned this year, while work on the proposed 1.5m metric tonnes per annum integrated plants for Niger Republic, South Sudan and Kenya, will start this year.

The company has committed more than $4.7bn for expansion in 2012–16 and will strengthen its export drive to some neighbouring West African countries this year. Some of the plants are integrated, while others are grinding plants with import capacity.

In Nigeria, Dangote Cement is working on additional third and fourth production lines to the existing 6m mtpa in Ibese, Ogun state. This will increase the total plant capacity to 12m mtpa. Another 3m mtpa line currently being added to the Obajana Cement plant in Kogi state, will bring the capacity to 13.25m mtpa when completed. This will make the Obajana plant one of the single largest cement plants in the world.

Dangote Cement plans to increase its total capacity in all its countries of operation in Africa (currently about 16) to about 58m mtpa. This will rank the company among the top eight |cement companies in the world. Dangote Cement, which is listed on the Nigerian Stock Exchange (NSE), currently accounts for about 30% of the exchange by market capitalisation and it is the biggest listed company in West Africa with a turnover of over $2.4bn in 2013.