Despite the challenging economic situation in 2019, Dangote Cement Plc has been able to sustain 54,000 jobs in four African countries, where the company has its operations.
The countries are: Nigeria, Ethiopia, Senegal and South Africa. The president of Dangote Group, Aliko Dangote stated this at Dangote Cement 11th Annual General Meeting held in Lagos, recently.
Dangote stated that more jobs would be created as the company intensifies export of clinker to other neighbouring countries from Nigeria.
He said, “In our 2019 socioeconomic impact assessment study on our operations in Nigeria, Ethiopia, Senegal and South Africa, we sustained 54,005 jobs (direct, indirect, induced) in these four markets in the year under review.”
Dangote Group is the highest employer of labour in Nigeria, outside the federal government and with its Refinery project coming up, the company will have more than 100,000 Nigerians under his employment.
It would be recalled that Governor of Central Bank of Nigeria (CBN), Godwin Emefiele, commended the investment drive of Dangote recently, said “He is excited with the progress made at Dangote Refinery and Petrochemical plant so far, and that when it becomes operational, the refinery and petrochemical plant will increase its workforce from the current 34,000 to over 70,000.”
Speaking to shareholders at the AGM, Dangote, said that the year 2019 was a strong year given the tough business environment across most of its operating geographies, disclosing that the Group recorded volumes of 23.7 million metric tonnes and revenues of N891.7 billion.
He said, “We recorded a strong EBITDA margin of 44.3 per cent. As a result of this performance, the Board has recommended for your approval a dividend of N16.00 per share.”
Speaking on the local Nigerian operations, he said, “Nigeria’s cement market grew slightly in 2019. We estimate that total market consumption was up between two to three per cent on the 20.7Mt estimated in 2018.”
Dangote explained that the modest performance was in spite of the fact that the market generally was impacted negatively by the disruptions related to the 2019 election cycles, heavy rains and the loss in land export volumes due to the border closure.
“Dangote Cement’s Nigerian operations remained at 14.1Mt in 2019, including export sales of 0.45Mt. Domestic sales in Nigeria were nearly 13.7Mt, compared to 13.4Mt in 2019. However, land exports reduced to 0.45Mt from 0.7Mt for the full year owing to the border closure in the last few months of 2019.
“The Bag of Goodies promotion, launched in July, drove strong increases in our Nigerian volumes in the third quarter,” Dangote pointed out.
He added that the innovative marketing effort enabled the company to maintain its market share despite the 4.5Mt new capacity which came into the market during the year.
He alluded to the new feat by Dangote Cement in commencing export of clinker via shipping from the Apapa and Onne ports to West and Central Africa, adding that the management was encouraged by the performance of its offshore operations.