Dangote Restates Support for Border Closure

Aliko Dangote,
Aliko Dangote

Africa’s richest man and President of Dangote Group, Alhaji Aliko Dangote has reiterated his full support to the federal government’s border closure policy.

Dangote described as erroneous, insinuations that the policy was responsible for the drop in Dangote Cement’s profitability for the year 2019.

He argued that the border closure policy is the best for the country’s economy at this point in time.

He revealed that Dangote Cement is building its terminals across Africa, adding that the border closure cannot in anyway impact negatively on the company’s performance.

Meanwhile; the stock of Dangote cement has remained dominant on the floor of the Nigerian Stock Exchange (NSE) as investors swooped on the stock after the news of a robust dividend as announced by the management of the company.

It would be recalled that the company approved that N16 per share be paid to the shareholders despite the drop in profitability.

The company’s investment across Africa is also bearing the desired results as Pan-African sales volume grew in the year 2019, hitting 9.6Mt from 9.4Mt. Dangote Cement Plant, Mtwara, Tanzania, recorded an increase of 94 per cent increase in volume within the review period. Dangote Cement Plant, Pout, Senegal put up a remarkable performance with sales up more than 100 per cent of rated capacity.

The board has proposed a final dividend of N16 per share subject to ratification by the shareholders at the coming annual general meeting (AGM).

Speaking on the result, Group Chief Executive Officer, Dangote Cement, Joe Makoju, said: “Dangote Cement maintained strong financial performance despite a low growth environment, pricing pressure and increasing competition in key markets. The Nigerian operations maintained volume and revenue performance in a challenging environment. Export sales were affected by the border closure in the second half of 2019. Looking ahead, I expect an increase in volumes in 2020 as we commence clinker exports via shipping from Nigeria”.