Nigerian Billionaire Aliko Dangote Eyes The World
Aliko Dangote has built Africa’s largest cement company. Hardly satisfied, he now has his sights set on the rest of the world.
When billionaire Aliko Dangotesneezes, the Nigerian Stock Exchange catches a cold. And it is understandable. Last October he listed his company, Dangote Cement, on the stock exchange and the company has a market value in excess of $13billion- accounting for a quarter of the Nigeria Stock Exchange’s total market capitalization. His net worth soared to $13.8 billion on Forbes’ 2011 list of the World’s billionaires, up from $2.1 billion in 2010. He ranks as the 51st richest person in the world, and the second richest man in the Middle East and Africa (behind Saudi Prince Alwaleed bin Talal Alsaud, who is worth $19.6 billion).
Dangote consolidated all his publicly-traded and private cement holdings in several African countries to form Dangote Cement. The company is now Africa’s largest cement manufacturer and one of the biggest in the world.
Dangote, the man who has made it all happen, dreams big. He believes that one day he’ll oust the French cement giant Lafarge to claim the world’s top spot. “It’s just a matter of time,” he says, with a wide smile. “One day, Dangote Cement will be the world’s number one.” But Dangote doesn’t just dream – he builds out his dreams and makes them real.
Dangote has proved skeptics wrong, and has gone on to become the undisputed lord of Africa’s cement industry. When he ventured into cement manufacturing following a hugely successful career in commodities trading, very few Nigerians gave him any chance of success. In 2000, the Nigerian government decided to privatize the state-owned Benue Cement Company (BCC) to enhance efficiency. BCC was a comatose, floundering cement manufacturer when Dangote took over, and the government depended on him to revive the company’s fortunes. Dangote did not disappoint. He invested heavily in the company, appointed new management and engineered a massive restructuring. Subsequently, the installed capacity of the company’s plant was increased from 900,000 tons per annum to 3 million metric tons per annum.
From his humble beginnings with BCC, Dangote has expanded his cement empire in monumental proportions over the last 11 years. Dangote Cement now owns about six cement import terminals in Nigeria and Ghana, through which it imports and bags cement. His terminals in Nigeria alone have a combined capacity of 9 million metric tons per annum.
His company also owns Obajana Cement, which is the largest cement plant in sub-Saharan Africa, boasting a capacity of over 5 million metric tons per annum. Other factories in Ibese and Shagamu add an additional 10 million metric tons per annum. Dangote recently acquired a controlling stake in Sephaku Cement, a South African company. He has also invested hundreds of millions of dollars towards new cement plants in Zambia and Senegal.
Dangote has come a long way from 1977 when he started a small commodities trading operation with a loan from his wealthy uncle. From that small trading outfit he began while in his twenties, he has built one of Africa’s largest conglomerates with interests in sugar, oil & gas, cement, transportation, banking and textiles. Cement still remains his most prized jewel.
Dangote cement has global aspirations. “We already have operations in Nigeria, Ghana, Benin, Zambia and South Africa. We are looking for opportunities in emerging markets like the Middle East and Asia. I think the time has come for us to go global,” he says.
“I have built the biggest cement company in Africa. Now I’m setting out to build the biggest cement company in the world,” he says.
When it is Dangote speaking, better believe.
More on Forbes Right Now
Related streams
Really Mfonobong Nsehe?
Your article makes no comment to him being sacked from his position as the 17th president of the Council of Nigerian Stock Exchange.
Or that he is a prime suspect in the share manipulation scam involving African Petroleum (AP) Plc stock prices.
What about the latest current scandal with his brother Sayyu Dantata for failing to repay stakeholders $792M for their acquisition of Chevron’s west african downstream assets?
Peterpan, Thanks for your comment. It’s true, even Dangote has his own problems. Never mind, I’ll talk about his problems soon in another post. You still can’t deny the fact that he’s one of Africa’s greatest businessmen, though.
Everyone has their issues but one is not guilty until proven guilty. Their are a lot of envious people who have animosity toward others who are successful. The gentlemen is obviously doing very well and should be congratulated.
Mr. Charles, I couldn’t agree more.