Dangote Cement’s expansion plans for Africa - CNBC Africa

Dangote Cement’s expansion plans for Africa

Western Africa

by Dara Rhodes 0

Dangote Cement plans expansion. Photo: Getty images

“We can keep on adding factories and adding production but the goods have to be sold. If you look at how we are taking up the market share, consistently, we are increasing the market share. So our primary focus is not just to continue adding to our capacity but to ensure that our goods are being sold,” Devakumar Edwin, CEO Dangote Cement told CNBC Africa.

Their sales numbers were profitable as they recorded an over 20 per cent increase. Edwin believes that they’ve been able to achieve the impressive growth because the focus is not just on production but on sales and logistics as well.

“By the middle of next year, our Nigerian capacity will should grow to 29 million tonnes and we expect the rest of Africa to bring up our capacity to 50 million tonnes. So we are looking at about 21 million tonnes capacity.”

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With over 60 per cent of the market share in Nigeria, Dangote cement is the largest producer of cement in Nigeria. Nonetheless, the company has some very ambitious plans for the rest of Africa.

“Early next year, our plants will start simultaneously with the South African plant will start. By January, the grinding plant part of the South African plant will start and then the full integrated plant will start early second quarter,” he said.

In October 2010, Dangote Industries Limited increased its stake in South African Sephaku Cement from 19.76 per cent to 64 per cent. The transaction made it South Africa’s largest foreign direct investment by an African company. 

“There is already a terminal operating in Ghana and we are handling an expansion there. In Cameroon, we are putting up a grinding plant to export clay tar from here. That will also be commissioned in the second quarter of next year. The Sierra Leone plant will also get commissioned in the second quarter of next year,” he explained.

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