China Signs US$4.3 Bn Cement Deal with Richest Man in Africa
Published By : 26 Aug 2015 | Published By : QYRESEARCH
Aliko Dangote, the richest man in Africa, has just signed a deal amounting to US$ 4.3 billion with an engineering company owned by the Chinese government, to set up factories for his cement company based in Nigeria, according to reports by BBC.
Various economies in Africa have been adversely affected by the fall in prices of commodities. However, many others have been witnessing a growth in infrastructure and cement has been in recent demand.
Sinoma International Engineering Co., headquartered in Beijing, China, will be setting up seven cement plants for Aliko’s Dangote Cement throughout Africa. One of the seven cement plants will also be set up in Nepal. Dangote Cement is the largest listed company in Nigeria, according to reports by Reuters and is located just outside of Nigeria. Aliko Dangote is the majority owner of the cement company.
In July this year, Dangote Cement reported that sales outside of Nigeria accounted for 14 per cent share of the overall revenue for the annual period ending on June 30. This is a marked improvement from the 3 per cent share reported the year before that.
It is anticipated that the new cement plants will be completed over a period of two and a half years from now and will add an estimated 25 million tons to the existing cement capacity of the firm, which is an estimated 45 million tons.
According to Reuters, the African cement units will be set up in Ethiopia, Cameroon, Mali, Kenya, Nigeria, Niger, Zambia, and Senegal.
By the year 2020, Aliko Dangote said that he wants the company to be producing at least 100 million tons of cement on an annual basis.
BBC reported that the Dangote Group will most definitely be impacted by the economic turmoil in China. But given that the group of companies is diversified, the impact might not be too adverse. Dangote Group also producers fertilizers and food and invests in oil refineries.