Dangote Cement Plc Annual Report 2021
Investment case continued
Robust
export strategy
Our vision is for West and Central Africa to be cement and
clinker self-sufficient. We fulfilled this goal in our home
country, Nigeria, which has gone from being one of the
largest importers of cement, to become self-sufficient and
now an exporter of cement and clinker.
Our export strategy
Nigeria has a relative abundance of quality limestone
especially in key southern regions near to demand centres
and export facilities.
Absence of limestone in much of West Africa, especially
coastal states, forces those countries to import bulk
cement or its intermediate product, clinker, usually from
Asia and Europe.
Dangote Cement is deploying an "export to import"
strategy to serve West and Central Africa from Nigerian
factories - making the region cement self-sufficient.
In May, we recommenced clinker exports from both our
Onne and Apapa terminals, in Nigeria. We achieved seven
clinker shipments, with a total volume of 197Kt.
706Kt of cement was exported by road out of Nigeria.
Dangote Cement will make the
regional and continental free
trade agreements a reality.
Long term
In the long term, we believe that the African Continental Free
Trade Area (AfCFTA) will give Dangote Cement the opportunity to
leverage high-quality limestone reserves and production assets
to serve African markets still importing cement and clinker. The
financial upside of higher fixed costs absorption is expected to
continue driving performance increase in Nigeria and abroad in
the coming years.
Cement demand in West and Central Africa -
a vast opportunity for Dangote Cement
Our vision is for West and Central Africa to become cement
and clinker self-sufficient. This will notably contribute to the
improvement of regional trade within the ECOWAS region and
beyond with AfCFTA. Nigeria can serve a potential market of
15 countries, 350 million+ people with high-quality and
competitively priced clinker. The Global Cement Report estimates
that West Africa imported over 20.4 million tonnes of cement and
clinker in 2021. Dangote Cement welcomes the strong dynamics
driven by the AfCFTA which supports our vision.
Cement exported
706Kt
2020: 149Kt
Clinker exported
197Kt
2020: 197Kt
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