Categories: Business

Border closure hits Dangote, export moved to Congo

Last updated on September 11th, 2021 at 03:02 pm

Dangote Cement exports from Nigeria to neighbouring countries fell 41% in 2019 when Nigeria’s government closed the land borders.

The development has made the dominant cement company in Africa move its exports to Congo Republic, producing from plants in those countries.

Nigeria shut its land border in August to curb the smuggling of rice to neighbouring states where it sells for more and an illegal arms trade. The closure has also hurt other Nigerian businesses, including cement exports, and stoked inflation.

Joseph Makoju, Dangote’s outgoing chief executive, said the border closure led exports to drop to 0.5 million tonnes in 2019 from 0.7 million tonnes in both 2018 and 2017. He said the company had exported to West and Central Africa from Nigeria.

Makoju said total production volumes last year were flat at 14.1 million tonnes. Higher discounts, marketing and haulage cost caused core profit to fall 9.1%, while margins slid 59.2%, he said.

In February, Dangote Cement appointed ex-head of Lafarge Africa Michel Puchercos as its new chief executive, Makoju said.

“We undoubtedly faced several challenges last year,” Makoju told an analyst call. “We are very optimistic about the market in 2020 and we expect to see some increase especially for infrastructure project.”

Dangote now plans to commence export of clinker, the main raw material to make cement, from Congo in 2020 and promote its Nigerian production more heavily to support growth.

The company said it planned to commence a share buy-back programme this year once it obtained regulatory approval and said it was actively considering a London listing with its long-delayed London IPO still “under review”.

Share price for Lagos-listed Dangote Cement, Nigeria’s biggest listed company, was quoted at 170 naira on Wednesday, a 41% drop from its peak of 286 naira two years ago.

Shares across Nigeria’s stock market has tumbled in the last two years. The oil-reliant economy has been stuck with low growth since it emerged from a 2016 recession.

Albert Echetah

Recent Posts

Pastef party led by Ousmane Sonko wins historic election victory

Senegal's ruling Pastef party has won a resounding victory in the legislative elections, taking130 of the 165 seats in parliament,…

November 22, 2024

Famine Risk Reaches Critical Levels as FoodCrisis Deepens In Gaza

Gaza’s hunger crisis is not only statistic, but a set of narratives such as Yasmin Eid, amother of six, who…

November 22, 2024

Kenya Launches Official Probe intoUgandan Leader’s Alleged Kidnapping

The government of Kenya announced that it is looking into the suspected kidnapping ofKizza Besigye, a well-known opposition politician from…

November 22, 2024

At least 7 members of the Nigerian security forces are missing after insurgentsambushed their convoy

A team of 80 security agents tasked with protecting the electricity grid was ambushed onMonday in Shiroro, Niger State, by…

November 21, 2024

Cryptocurrency Gains Momentum inAfrica Amid Global Shifts in Trump’sElection

Cryptocurrency becomes the new thing in Africa. People shift for stable alternatives aftertheir unstable local currencies. Many people believe Donald…

November 21, 2024

UAE Delivers Lifeline: 30,000 Food BasketsBring Hope to Sudanese Refugees in Uganda

UAE has also distributed 30,000 food baskets to Sudanese refugees in Kiryandongo refugeecamp Uganda to benefit nearly 100,000 affected people.Aid…

November 21, 2024

This website uses cookies.