Dangote Group in Cameroon

Written by Emmanuel Uffot

Saturday, 08 October 2011

As part of its expansion policy, Dangote Group signs a $115 million investment agreement to establish a cement plant in Douala, Cameroon Republic Aliko Dangote’s effort to expand the tentacles of his business across the world took another positive dimension on Monday, September 19, when the Dangote Group signed a $115 million Investment Agreement with the Republic of Cameroon for the construction of a 1.5 million metric-tonne composite cement production plant in Douala, Cameroon. At the signing of the investment deal, Philemon Yang, prime minister of Cameroon, praised Dangote for the investment initiative which, he noted, would go a long way to improve economic and political co-operation between Nigeria and Cameroon. He further lauded Dangote for his belief in the Cameroonian economy, stressing that his track record was an inspiration to other African investors. “I extend my congratulations to Dangote Group and its president, Aliko Dangote, for this massive investment initiative which will change the landscape of Cameroon. We also salute the determination of Dangote who believed so much in this project and has stopped at nothing to make it happen,” he said. Dangote, who was at the occasion, said the project would be financed 100 percent with funds raised outside Cameroon in order not to put pressure on the nation’s financial system. The Kano-born business mogul agreed with the opinion of the Cameroonian prime minister that the investment agreement between Dangote, Industries Limited and Cameroon was a step forward in the mutually beneficial business relationship. According to Dangote, their projection is to import one million tonnes of clinker a year when the plant scheduled to be completed in 18 months’ time begins production. “From our projections, this $115 million project with an installed capacity of 1.5 million metric tonnes per annum will take between 14 and 18 months to complete. We project that we will import one million tonnes of clinker per year, we hope to use up to 30 percent of local raw materials in line with our business philosophy of adding value to the economy everywhere we operate,” he said. The $115 million agreement which was signed by the president of Dangote Group and Cameroonian prime minister Yang, who was represented by Badei Ndanga, minister of mines, industry and technology, is said to be the first tranche of a $700 million long-term investment projection of Dangote in the real sector of the economy of the French-speaking Central African country. The proposed plant, on completion, will bring to eight, the cement plants owned and operated by the conglomerate. Dangote Group which currently has the largest investment in cement in Nigeria, owns Obajana Cement Plant in Kogi State; Benue Cement Company, Gboko, Benue State, and two cement plants in Ibese, Ogun State and Odukpani in Cross River State. The deal in Cameroon is one of the many investments in cement the Dangote Group has outside the shores of Nigeria. In April 2008, the industrialist acquired 45 percent stake in Sephaku Cement, a South African firm, for three billion Rand (N44.75 billion). The deal with the South African cement company came on the heels of an earlier deal in February 2008, when he signed an agreement worth $1.2 billion with China’s Sinoma International, to build cement plants in the Democratic Republic of the Congo, Equitorial Guinea, Ethiopia, Tanzania and Zambia. Dangote also has two cement plants in Ghana. Dangote Group is a diversified and fully integrated conglomerate with an annual turnover in excess of N450 billion (US$ 3billion). The Group’s interests cut across many sectors in Nigeria and across Africa. Its core business focus is to provide local value added products and services that meet the basic needs of the populace. Its current business interests include cement, sugar, salt, pasta, beverages, real estate, port operations, poly products, haulage services and packaging, oil and gas, steel and telecommunications. He was recently appointed a member of the 29- man National Economic Management Team set up by the Federal Government to fast-track the economic vision of the administration of President Goodluck Jonathan. His appointment as one of the few members from the organised private sector, has been lauded by many Nigerians given his huge investment in the economy and his reputation as the single highest employer of labour in Nigeria after government.