Dangote Cement invests $3bn on plants, grinding terminals across Africa


Group Chief Executive Officer of Dangote Cement, Joe Makoju has revealed that the company has invested a whopping $3B to build manufacturing plants and import/ grinding terminals across Africa.
The company’s operations, according to Makoju are in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.7Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).
For the second quarter under review, Makoju also revealed that while total Nigeria sales volumes went up by 13.9 per cent to 7.8Mt, Pan-African volumes reduced by 3.9 per cent, mainly due to shutdown in Tanzania.
In all, the company, which employed 27,952 workers in Nigeria in 2017 had its revenue increased by 16.9 per cent and it earnings per share also increased by 3 per cent to N6.60 kobo per share for the second quarter, ended in June 30, 2018.
“Our first-half performance was very strong and driven by an excellent recovery in Nigeria, where our sales volumes increased by nearly 14 per cent and revenues rose by more than 18 per cent.
Pan-African operations saw a slight fall in volumes but both revenues and EBITDA increased because of better pricing and currency conversion effects.
In addition, we achieved the largest-ever issuance of Commercial Paper by a Nigerian company when we issued ?50B Series 1 & 2 Notes at the end of June, with a discount rate that reflected the strength of our Company and its excellent credit ratings.
Of course, our strong performance has been overshadowed by the tragic and heartbreaking events in Ethiopia.
I would like to pay tribute to my colleagues Deep Kamra, Beakal Alelign and Tsegaye Gidey and offer our sincere condolences to their families.” Explaining the rationale behind the success recorded by the Dangote Cement’s revenue, the acting Group Chief executive, Joe Makoju said “the increase was helped by our decision to increase our use of local coal in Nigeria and that also helped to improve our fuel security, maintain production uptime and it reduced our need for foreign currency.
We source coal from our parent company, Dangote Industries and from another Nigerian supplier, and we are very happy with the way this has worked out for us because it has enabled us to phase out the use of expensive low pour fuel oil in our kilns and also to reduce our use of imported coal”



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