Dangote eyes US$700m in foreign exchange

Dangote eyes US$700m in foreign exchange
18 June 2019

Dangote Cement Plc announced plans to attract US$700m in foreign exchange from cement exports to boost Nigeria’s economy, according to AllAfrica.

While addresssing shareholders at the AGM in Lagos, he company’s Chairman, Aliko Dangote, said: We have a lot of on-going projects aimed at increasing capacity, and by next year, we will not only export one million tonnes as we normally do now, we will be servicing both the domestic and other African countries from Nigeria.

"We will have a capacity of about 8Mt to export and that will generate a foreign exchange of about US$700m into the country, to assist the federal government and the group in its other activities across Africa."

He added that Dangote reported a 7.4 per cent rise in cement sales to 23.5Mt in 2018 as well as a 11.9 per cent increase in revenues to NGN901.2bn (US$2.5bn). "Sales of cement from our Nigerian plants increased by 11.4 per cent to 14.2Mt in 2018. Our Pan-African operations contributed 9.4Mt, level on 2017, with strong performances in Cameroon, Senegal and Zambia helping to offset weaknesses in Ethiopia, and gas turbines now operating in Tanzania, we expect these two large plants to improve their performance in 2019, further increasing profitability."

Going forward, the company is expected to open export facilities in Lagos and Port Harcourt, Nigeria. The new terminals will enable Dangote to export clinker, initially to the company’s grinding plants currently under construction in west Africa.

"Not only will these generate useful foreign currency for Dangote Cement to support other expansion projects outside of Nigeria, they will also help to increase the output of our Nigerian plants. They will also help to improve job creation, and increase prosperity in Nigeria, something of which all stakeholders can be proud when achieved,” Mr Dangote said.

Also, the Group CEO, Joseph Makoju, said the company will focus on efficiency gains, and achieving higher sales in domestic and export markets in 2019. He said: "A major priority for us is to get these export terminals on stream so we can replace non-African imports in Cameroon, rake in foreign currency for Nigeria, and increase the utilisation of our Nigerian plants."

Published under Cement News