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Dangote backs Buhari on border closure

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President of Dangote Group, Aliko Dangote, has reiterated his full support for the Federal Government’s border closure policy.

While debunking insinuations that the policy was responsible for the drop in Dangote Cement’s profitability for the year 2019, he said the closure was best for the country’s economy at this point.

He revealed that Dangote Cement was building its terminals across Africa and the border closure cannot in anyway impact negatively on the company’s performance.

Meanwhile, the stock of Dangote Cement has remained dominant on the floor of the Nigerian Stock Exchange, NSE, as investors swooped on the stock after the news of a robust dividend, as announced by the management of the company.

Recall that the management approved that N16 per share be paid to the shareholders despite the drop in profitability.

ALSO READ: Communities benefit from Dangote Employee-led sustainability initiatives

The company’s investment across Africa is also bearing the desired results as pan-African sales volume grew in the year 2019, hitting 9.6Mt from 9.4Mt.

Dangote Cement Plant, Mtwara, Tanzania, recorded an increase of 94 percent in volume within the review period.

Dangote Cement Plant, Pout, Senegal, put up a remarkable performance with sales up more than 100 percent of rated capacity.

The board has proposed a final dividend of N16 per share subject to ratification by the shareholders at the coming annual general meeting, AGM.

Speaking on the result, Group Chief Executive Officer, Dangote Cement, Joe Makoju, said: “Dangote Cement maintained strong financial performance despite a low growth environment, pricing pressure and increasing competition in key markets. The Nigerian operations maintained volume and revenue performance in a challenging environment.

“Export sales were affected by the border closure in the second half of 2019. Looking ahead, I expect an increase in volumes in 2020 as we commence clinker exports via shipping from Nigeria.

“Pan-Africa volumes were slightly up notably supported by Tanzania and Senegal. I am glad to report that Tanzania contributed positively at EBITDA level. In 2020, I believe Dangote Cement will see an increase in profitability in pan-Africa driven by higher volumes and further efficiency improvements.

“As I retire from Dangote Cement, I am proud to have watched it grow from a local producer back in 2007 to a major force in global cement production.

“Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement, serving neighbouring countries.

“I wish Mr. Michel Puchercos all the best as the new Group Chief Executive Officer of Dangote Cement.”

Vanguard

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