Africa’s richest man Aliko Dangote says cement company has sustained 54,000 jobs in 4 African countries despite tough economic conditions

Dangote Cement has sustained 54,000 jobs in four African countries, Africa’s richest man and President of Dangote Group Aliko Dangote told stakeholders at the company’s 11th annual general meeting in Lagos. The four countries where the company operates are Nigeria, Ethiopia, Senegal and South Africa.

“According to our 2019 socio-economic impact assessment study specifically on our operations in Nigeria, Ethiopia, Senegal, and South Africa, we sustained 54,005 jobs (direct, indirect, induced) in these four markets in the year under review,” Mr. Dangote said.

Dangote told the shareholders that the year 2019 was a strong year given the tough business environment across most of its operating geographics. He said the group recorded volumes of 23.7 million metric tons and revenues of ₦891.7 billion.

Aliko Dangote. Picture: REUTERS/AKINTUNDE AKINLEYE

“We recorded a strong EBITDA margin of 44.3 percent. As a result of this performance, the board has recommended for your approval a dividend of ₦16.00 per ordinary 50 kobo share.”

“Nigeria’s cement market grew slightly in 2019. We estimate that total market consumption was up between 2 per cent-3 percent on the 20.7Mt estimated in 2018,” he said.

Dangote explained the modest performance was achieved even though the market generally was impacted negatively by the disruptions related to the 2019 election cycles, heavy rains and the loss in land export volumes due to the border closure.

“Dangote Cement’s Nigerian operations remained at 14.1Mt in 2019, including export sales of 0.45Mt. Domestic sales in Nigeria were nearly 13.7Mt, compared to 13.4Mt in 2019. This implies a 2 percent growth mirroring the estimated GDP growth for the year. However, land exports reduced to 0.45Mt from 0.7Mt for the full year owing to the border closure in the last few months of 2019.

“The Bag of Goodies promotion, launched in July, drove strong increases in our Nigerian volumes in the third quarter”, Dangote pointed out, adding that the innovative marketing effort enabled the company to maintain its market share despite the 4.5Mt new capacity which came into the market during the year.”

The Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, lauded the investment drive of Dangote recently said that he was excited with the progress made at Dangote Refinery and Petrochemical plant so far.

According to him, when it becomes operational, the refinery and petrochemical plant would increase its workforce from the current 34,000 to over 70,000.

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Simon Ateba is Chief White House Correspondent for Today News Africa. Simon covers President Joe Biden, Vice President Kamala Harris, the U.S. government, the United Nations, the International Monetary Fund, the World Bank and other financial and international institutions in Washington D.C. and New York City.

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