Photo by: Duane Daws
Cement producer Dangote Cement is aggressively targeting 60% market share in all countries where it operates as it cuts prices, doubles its production and expands it geographic footprint over the next three years, positioning itself to benefit from the 6.1% cement demand growth expected from sub-Saharan Africa.
Dangote regional CEO for East and Southern Africa Albert Corcos on Monday told delegates at the CBI Africa conference, in Sandton, that the company aimed to raise its cement production capacity to 83.7-million tonnes a year by 2019, up from the current 41.7-million tonnes a year.
Some $2.5-billion would be invested to increase its production to more than 60-million tonnes a year by 2017 through expansion plans in 13 African countries and new production projects in new geographical markets as aggressive growth plans target a strong Pan-African platform for the group.
Dangote has operations in Nigeria, Benin, Ghana, Congo, Tanzania, Senegal and South Africa, besides others, with ambitions of doubling capacity in Ethiopia, Cameroon and Zambia.
Nigeria alone would account for just under half of the production output by 2019 at around 38-million tonnes a year.
Dangote Cement's current total production capacity in Nigeria from its three existing cement plants, namely Obajana, Ibese and Gboko, was close to 30-million tonnes a year.
The group had also boosted its revenue over the past year as it slashed the price of cement, he said, citing recent cuts of 30% in Tanzania and 50% in Zambia.