Dangote Cement Plc, a leading cement producer in Africa, has embarked on an ambitious expansion drive across the continent, fueled by a substantial investment of over $8.5 billion over the past 15 years. This significant capital outlay underscores the company’s unwavering confidence in Africa’s growth potential and its commitment to becoming the continent’s foremost cement and clinker provider. The company’s expansion strategy involves a combination of greenfield and brownfield projects, aimed at boosting its total installed capacity to a staggering 66.4 million tonnes per annum (Mtpa) by 2030. This aggressive growth plan is a testament to Dangote Cement’s long-term vision and its dedication to meeting the burgeoning infrastructure needs of a rapidly developing Africa.
The company’s recent ‘Facts Behind the Figure’ presentation at the Nigerian Exchange (NGX) provided a platform to unveil these ambitious plans and highlight its robust financial performance. Emmanuel Ikazoboh, the newly appointed chairman, succeeding Aliko Dangote, addressed shareholders, assuring them of continued robust returns on their investments and reaffirming the company’s commitment to upholding strong corporate governance principles. Ikazoboh’s message emphasized a collaborative approach, promising continued partnership with regulators and market operators while expressing gratitude to employees and partners for their contributions to the company’s success. He emphasized the importance of collective effort in achieving even greater milestones in the future.
Arvind Pathak, the Chief Executive Officer of Dangote Cement, detailed the company’s expansion roadmap, highlighting key projects currently underway. Notably, the commissioning of the first phase of a 3 Mtpa plant in Ivory Coast, with a 1.5 Mtpa capacity already operational, signals the company’s westward expansion. Furthermore, progress on the construction of the 6 Mtpa integrated Itori Plant in Ogun State, Nigeria, demonstrates a commitment to strengthening its domestic production base. A significant investment of $400 million earmarked for doubling production capacity in Ethiopia further solidifies Dangote Cement’s pan-African growth strategy, targeting key markets with high growth potential.
Dangote Cement’s financial strength and commitment to shareholder value were also underscored during the presentation. The company has consistently distributed dividends over the past 15 years, totaling over N3.3 trillion. This impressive track record culminated in a dividend payout of N502.6 billion (N30 per share) for the 2024 financial year, a testament to the company’s resilience and profitability even amidst foreign exchange fluctuations and escalating operational costs. This sustained dividend payout policy reinforces investor confidence and demonstrates the company’s commitment to rewarding its shareholders.
The leadership transition at Dangote Cement, with Emmanuel Ikazoboh taking the helm as chairman, has been met with positive reception from both the capital market and shareholder groups. Umaru Kwairanga, Group Chairman of the Nigerian Exchange Group, commended Aliko Dangote’s contributions to the capital market and the private sector, highlighting Dangote Cement as a model of successful wealth creation and distribution to investors. Temi Popoola, Group Managing Director and Chief Executive Officer of NGX Group, expressed optimism about the new leadership under Ikazoboh, anticipating further value creation for shareholders. This positive outlook from key figures in the Nigerian capital market underscores the confidence in Dangote Cement’s future prospects.
Shareholder groups, including the Association for the Advancement of Rights of Nigerian Shareholders and the Pragmatic Shareholders Association of Nigeria, echoed these sentiments, praising the company’s consistent dividend payments and its ability to deliver strong financial results despite challenging economic conditions. This positive feedback from shareholder representatives further validates the company’s performance and its commitment to creating value for its investors. Beyond financial performance, Dangote Cement also highlighted its significant increase in social investments, which rose by 469.8% to N3.2 billion in 2024. These investments were directed towards critical sectors such as education, healthcare, agriculture, infrastructure, and economic empowerment initiatives, demonstrating the company’s commitment to social responsibility and sustainable development. This focus on social impact showcases Dangote Cement’s holistic approach to business, recognizing its role not just as a profit-generating entity but also as a catalyst for positive social change.
