Dangote Cement Plc Annual Report 2021
Investment case continued
Strong growth
in Africa
Africa is a major growth market for cement and needs
to more than double its cement consumption in
the coming decade to close the infrastructure and
housing gap.
Africa cement market
Cement demand is driven by an increase in population,
urbanisation, infrastructure and housing growth. These are key
attributes driving the strong demand for cement in Africa.
Sub-Saharan Africa is home to over 1.1 billion people. The United
Nations estimates that by 2050, the region will have a population
of more than 2.1 billion. Two-thirds of this growth will be absorbed
by urban areas, which will be home to an additional 950 million
people. The World Bank describes Africa as the fastest growing
and youngest region globally. As the population continues to
expand, Africa urgently needs infrastructure, housing and
commercial buildings. This creates a tremendous opportunity for
Dangote Cement.
ZUMA
Wirigen
SP 500
AG
DANGO
Economic outlook
Although the impact of the COVID-19 shock in Sub-Saharan Africa
(SSA) has been severe, economic growth emerged from the 2020
recession, with the region expanding by 4.5% in 2021. According
to the IMF, SSA is expected to grow by 3.8% in 2022. The recovery
is supported by favourable external conditions on trade, elevated
commodity prices and the relaxation of stringent pandemic
measures. Faster vaccine deployment could accelerate the
region's growth to 5.1% in 2022 and 5.4% in 2023 - as containment
measures are lifted faster and spending increases. At Dangote
Cement, we have continued our vaccination advocacy and
roll-out across all countries of operations, encouraging and
advocating that all our staff get vaccinated.
Furthermore, one of the region's most promising prospects stems
from the new African Continental Free Trade Area, a potential
market of 1.3 billion people, with a combined GDP of almost
$3.5 trillion in 2021. Ensuring the success of this trade-integration
framework would not only reduce Africa's vulnerability to global
disruptions but will boost regional competition, attract foreign
investment and promote food security.
Per capita consumption
The Global Cement Report estimates 2021 average global per
capita consumption at 541kg. Levels are highest in the Gulf region,
while China's per capita consumption remains the third highest
in the world at 1,665kg. Sub-Saharan Africa significantly lags
average per capita consumption. As a region, per-capita cement
consumption is just 130kg, indicating both the huge potential from
the region in the future and the low level of cement consumption
at present.
Global per-capita cement consumption
541kg
SSA per-capita cement consumption
130kg
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Dangote Cement Plc Annual Report 2021-
Concrete road construction in Nigeria
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