Dangote is “within striking distance” of increasing its production capacity to 20Mta, which will give it a market share of 70 per cent in 2012, said CSL, which assigned the company a ‘neutral’ rating in new coverage. The predicted increase is in line with CSL’s expectations for the market.
Dangote accounts for 24 percent of the Nigerian equity index, and “gives exposure to an underdeveloped segment which is growing at approximately twice gross domestic product,” Oludare Fajimolu, a CSL analyst, said in the note.
