Dangote Cement Plc Annual Report 2021
Governance continued
Dangote's contribution to Africa's development
Africa's population is growing, with an ever-larger number of
people making cities their home. The task of sustainably providing
housing, transportation and other basic services to this rising
number of urban dwellers in the face of climate change is vast.
When taking the performance of a building over its whole lifecycle
into account, cement offers significant sustainability benefits
over other building materials thanks to its innate properties,
such as its strength, durability, resilience to extreme weather
and hazards such as fire, its thermal mass, its recyclability, its
carbon uptake and its local availability. Today, cement production
processes in Africa have embraced ways to minimise carbon
footprints by the efficient use of materials. Cement, therefore,
enables the development of sustainable and resilient buildings
and communities in Africa.
Contribution to job creation
Dangote Cement is a strong contributor to the local economy of
Africa. Throughout our value chain, we created jobs for thousands
of Nigerians and Africans in nine other countries. Increased
exports of cement products that are produced in Nigeria and
exported to Pan-Africa have maintained production capacity in
the region. Exports are taken into account in the calculation of
the multiplier effect since they contribute to the local economy
and jobs.
In 2021, our business activities supported over 19,561 direct jobs.
Staff between 18 to 50 years constituted 16,755 or 86.1% of our
total workforce, indicative of our commitment to supporting
government efforts at combating rising youth unemployment
across the country.
Contribution to household income
Since the Nigerian cement sector metamorphosed from being
import-dependent to a growing hub for cement export in Africa,
Dangote Cement has had a significant contribution to the
country's Gross Domestic Product (GDP). To fulfil our purpose,
we foster transformational change through income generation by
close collaboration with partners and stakeholders for shared value
creation. In 2021 we strengthened local economic development
programs through collaboration with the people, local authorities
and non-governmental organisations (NGOs). Our SME projects
which benefitted many people in Pan-Africa have proven a key
success factor in multiplying our positive impact on society. The
Company also plays a major role in income generation through the
construction and rehabilitation of major roads, bridges, networks
and public infrastructure for the enhancement of social welfare.
UNGOTE
DANGOTE
CEMENT
DANGOTE
CEMENT
The salaries, wages, and dividends that we pay are our direct
contributions to household income which amounted to N341,283
million in 2021, a slight decrease from #341,872 million in 2020;
while our taxes, local procurement, and social investments are
our indirect contributions which amounted to N585,633 million in
2021, an increase of 21% from #485,547 million in 2020.
Contribution to household income
Parameters.
2021
N'million
2020
N'million
2019
N'million
Direct contributions
Employee wages, salaries
and benefits
69,278
69,179
60,603
Dividend paid to
shareholders
Total
272,005 272,693 272,648
341,283 341,872 333,251
Indirect contributions
Tax expense
173,927
97,242
49,958
Local procurements
(all operations)
409,216
385,453 284,845
Social/community
investments
2,490
585,633
2,852
485,547
1,108
335,911
Total
Economic performance - direct economic value
created and distributed (EVC&D)
Our gross revenue (economic value created) increased by 34%
from #1,034,196 million in 2020 to 1,383,637 million in 2021,
supported by our 2021 consumer activities and strengthened
market penetration strategies. Similarly, our economic value
distributed (operating costs, employee wages and benefits,
payments to providers of capital, payments to government by
country, and community investments) increased from N1,033,843
million in 2020 to 1,260,718 million in 2021.
Direct, indirect and induced economic value generated and distributed - gross value added (GVA)
2021
2020
2019
2018
2017
# million
N million
N million
Revenue
1,383,637
1,034,196
891,671
Employee wages, salaries and benefits
69,278
69,179
60,603
N million
901,213
55,164
N million
805,582
47,253
Operating costs*
743,018
591,877
540,634
520,236
471,207
Dividend paid to shareholders
Social/community investments
272,005
2,490
Local procurements (all operations)
409,216
272,693
2,852
385,453
272,648
178,925
144,844
1,108
284,845
1,287
239,859
1,020
281,461
*Excluding administrative expense.
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