Download Tony Hadley, Chief Executive, Dangote Cement Group

Stating the case for investing in Nigeria
Tony Hadley, CEO, Dangote Cement
Contents
• The Dangote Group in Nigeria
• Profile
• Business sectors
• Major Assets
• The Nigerian operating environment
• Economy
• Opportunities
• Challenges
The Dangote Group in Nigeria
Group Profile
• Mission Statement – Touching the lives of people by
providing their basic needs
• Diversified business conglomerate focused on provision
of essential goods (food and shelter)
• Began life as a trading business (1985) and made a
strategic decision in 1999 to transition to local
production/manufacturing.
• Recognition of the opportunity to develop value added
local production capacity
• Rapid growth into one of the largest conglomerates in
Nigeria
Group business sectors
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Cement - Manufacturing / Importing, Packing and Distribution
Sugar - Farming & Refining, Packing and Distribution
Salt - Refining, Packaging and Distribution
Flour & Semolina - Milling, Packing and Distribution
Spaghetti, Macaroni & Noodles - Manufacturing and Distribution
Polysacks - Manufacturing
Logistics - Port Management
Logistics - Transportation of Raw material and Finished Goods
Property Development
Oil & Gas exploration
Telecoms – 3G licence
• Associated infrastructure
Major Assets (1)
Obajana Cement Plant – Largest cement plant in Sub-Saharan
Africa (5 Million tonnes of production capacity)
Major Assets (2)
Dangote Sugar Refinery Plc (Apapa, Lagos) – 1.44 Million tonnes
of annual refining capacity making it the largest in SSA.
Major Assets (3)
Savannah Sugar in Numan has 32, 000 hectares of cultivated land
and currently produces 150,000 tonnes of raw sugar per annum.
An upgrade is currently taking place to increase production to
600,000 tonnes per annum.
Major Assets (4)
Dangote Flour Mills plc has five flour mills in Nigeria producing
4,500 Metric tonnes of flour every day
The Nigerian operating environment
Economy
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GDP (PPP) of US$293 Billion
Real GDP growth (2008) of 6.4%
Population (2008) – 143 Million
Oil and agriculture made up 69% of GDP in 2009
(37.3% and 31.7% respectively)
• Non-oil sector growth outstripping real GDP
growth (agriculture grew by 8% in 2007)
• Predicted growth of over 3.5% in 2009, despite
global financial crisis (IMF)
Opportunities
• Cited by Goldman Sachs as one of ‘next 11’
countries expected to follow the BRICs into
the top 20 world economies
• Significant consumer market and growing
middle class (143 Million population and
growing)
• Large natural resource reserves
• Reform agenda
• High Return on Investment (ROI)
Challenges
• Infrastructure deficiency (energy, services
and transportation)
• Financial Sector – high cost of capital and
short-term mindset
• Lack of sufficient skilled local labour
• Costly operating environment
A challenging environment, but one that rewards
those committed to success
Conclusions
• Strong ROI for company’s committed to
investment
• Reform agenda creating a platform for enhanced
operating environment
• Growth despite global financial crisis
• Opportunities across a range of non-oil sectors
• Importance of local content and knowledge
• The Dangote model demonstrates that success is
achievable across a range of sectors