Dangote Cement Plc (DCP) reaffirmed plans to increase cement capacity from 55Mta to 80Mta by 2030 at its Capital Markets Day in London yesterday, presenting a strategy centred on African infrastructure demand, cost leadership and export growth.

Opening the meeting, chairman Emmanuel Ikazoboh described the group as “an African champion offering growth, yield and impact”. With operations across 11 countries, he emphasised Dangote’s market leadership and role in supporting Africa’s development.

“London is a natural bridge between African opportunity and global investors,” he said.

Group managing director and CEO, Arvind Pathak, positioned DCP’s pan-African production and logistics network as particularly well placed to meet the continent’s infrastructure deficit.

“Development is not going to wait for four to five years. So we are well placed to capture that now and for a long period of time,” he said, contrasting Dangote’s established operations with the time required to build competing capacity.

The presentation highlighted Africa’s projected share of more than 20 per cent of the world’s population by 2050 and annual infrastructure investment needs of US$130–170bn. Chief strategy officer, Adetorera Banjo, framed the opportunity around the continent’s development: “This is a market that has to be built.”

The expansion programme combines greenfield projects with brownfield investments, offering indicative paybacks of four years and two-and-a-half years, respectively.

Itori’s first 6Mta phase in Nigeria is scheduled for commissioning by end-2026, with another 6Mta envisaged in a second phase. Other projects include a 1.5Mta integrated plant in Zimbabwe, an additional 1.5Mta cement mill in Senegal, 2.5Mta through a second line and satellite grinding unit in Ethiopia, and a new 3Mta line in northern Nigeria.

Group CFO, Dr Gbenga Fapohunda, outlined medium-term capital expenditure of approximately US$4.5bn, with over 80 per cent earmarked for expansion. DCP targets revenue growth of at least 25 per cent in 2026 and medium-term consolidated revenue of NGN11–11.5tn, compared with NGN4.3tn in 2025.

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Management highlighted cash conversion of 89 per cent and interest cover of around eight times. Operating cash flow and supplier credit are expected to fund expansion, with low leverage providing additional borrowing capacity.

Logistics remains central to cost leadership. Head of transport, Murilo Silva, described logistics as “a strategic asset”, underpinning Dangote’s distribution reach, scale and cost advantage. He highlighted the rollout of compressed natural gas (CNG) trucks, with the Nigerian fleet targeted for conversion by 2027. CNG offers fuel savings of around 60 per cent against diesel, while fuel represents approximately 60 per cent of transport costs. 

“By using CNG, we increase our market penetration because we will be the ones serving those customers,” he said.

Cement and clinker exports are targeted to reach 10Mta by 2030, supported by expansion at Apapa and planned deepwater port infrastructure in Ogun State.

Head of sustainability, Oyekemi Oyelola, linked environmental investment directly to business resilience: “We do not see sustainability as a cost centre. We actually see it as a risk management strategy.” Dangote aims to increase its thermal substitution rate to 25 per cent by 2030, from around nine per cent currently, replacing fossil fuels with agricultural, industrial and municipal waste.

Asked about Nigeria’s cement pricing investigation, Mr Pathak said DCP had supplied the requested information and reported no further developments. On competition following Huaxin’s acquisition of Lafarge Africa, he stressed management’s focus on costs and efficiency.

The meeting forms part of investor engagement ahead of a proposed secondary London listing. Mr Pathak described preparations as “a work in progress” and declined to confirm whether approximately 10 per cent of the company would be offered, pending advisers’ recommendations.