Alhaji Aliko Dangote, President of the Dangote Group, on Thursday said the Federal Government’s decision in August 2019 to close the nation’s land borders is not to blame for the drop in the revenue of his Dangote Cement Plc in 2019 full-year.
A statement by his group said the linkage was erroneous, describing the border closure policy as the best for the country’s economy at a time this.
Dangote Cement, he continued, is building its terminals across Africa and the border closure cannot in any way impact negatively on the company’s performance.
It would be recalled that the board of Dangote Cement approved a dividend per share of N16 for approval by the shareholders at the next annual general meeting.
The company’s investment across Africa, the statement assured, is 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 percent increase in volume within the review period. Dangote Cement Plant, Pout, Senegal put up a remarkable performance with sales up more than 100 percent of rated capacity.
Speaking on the result, Group Chief Executive Officer, Dangote Cement, 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. 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 the 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.
“As I retire from Dangote Cement, I am proud to have watched it grow from a local producer back in 2007 to a major force in global cement production. Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries. I wish Mr. Michel Puchercos all the best as the new Group Chief Executive Officer of Dangote Cement.”
Dangote Cement is Africa’s leading cement producer with nearly 46Mta capacity across Africa. it is a fully integrated quarry-to-customer producer, with a production capacity of 29.25Mta in its home market, Nigeria. Obajana plant in Kogi state, Nigeria, is the largest in Africa with 13.25Mta of capacity across four lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta and Gboko plant in Benue state has 4Mta.
In addition, Dangote Cement has operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).