Dangote Group

Dangote Group
Private
Industry Conglomerate
Founded 1981
Founder Aliko Dangote
Headquarters Lagos, Nigeria
Key people
 Aliko Dangote
(President & CEO)
Products
Revenue Increase US$4.1 billion (2017)[1]
Number of employees
 30,000
Website dangote.com

The Dangote Group is a Nigerian multinational industrial conglomerate, founded by Aliko Dangote.[2] It is the largest conglomerate in West Africa and one of the largest on the African continent. The group employs more than 30,000 people, generating revenue in excess of US$4.1 billion in 2017.[2]

The company was founded in 1981 as a trading enterprise, importing sugar, cement, rice, fisheries and other consumer goods for distribution in the Nigeria market. The group moved into manufacturing in the 1990s, starting with textiles, moving onto flour milling, salt processing and sugar refining by the end of the decade. The company next moved into cement production, growing rapidly and moving into other African countries. A high degree of vertical integration is a hallmark of Dangote Group's operating strategy.

The group now owns and operates over 18 subsidiaries, operating in ten African countries. Dangote Cement, is one of these subsidiaries that is listed on the Nigerian Stock Exchange, with its market capitalization accounting for almost 20 percent of the total capitalization of the Nigerian Stock Exchange.[3] Dangote Group is headquartered in Lagos, Nigeria.

In 2016, Dangote signed a contract with CNOOC for the installation of a large underwater offshore pipeline. The pipeline, when completed will extend from Bonny (Rivers State) through Ogedegbe, Olokola to Lekki and the Escravos Lagos pipeline, finally terminating at the West Africa Gas Pipeline.[4]

Overview

The company was founded by Aliko Dangote after receiving a $3,000 loan from an uncle.[2] Initially, the company focused on the bulk sale of foods such as rice, but gradually expanded to shipping and the importing of cement.[2] Dangote competed (and competes) with Lafarge, a French company that imported and produced the bulk of African cement.[5]

Today, Dangote Group is a diversified conglomerate, headquartered in Lagos, with interests across a range of sectors in Africa.[6][7] Current interests include cement, sugar, flour, salt, pasta, beverages and real estate, with new projects in development in oil and natural gas, telecommunications, fertilizer and steel.[5][8][6][9] Competitors in both Nigeria and other portions of Africa include Stallion Group.[10] Adenike Fajemirokun is the chief risk officer.[11]

Subsidiary companies

Dangote Cement, the largest cement production company in Africa, with a market capitalization of almost US$14 billion on the Nigeria Stock Exchange, has subsidiaries in Benin, Cameroon, Ghana, Nigeria, South Africa and Zambia.[12] In December 2010, the group signed an agreement with the Government of Zambia to construct a US$400 million cement plant in Zambia. Once completed in June 2013, as anticipated, the new plant is expected to have an annual output of 1.5 million metric tonnes of cement.[13]

Dangote Sugar is another major subsidiary of Dangote, competing with Bua Refinery Ltd. and Golden Sugar Co.[5] Dangote Sugar is the largest sugar refining company in sub-Saharan Africa.[14]

Dangote Refinery is expected to begin operations in the early 2020s, and will be the largest refinery in Africa at full capacity.[15]

See also

References

  1. ↑ Okafor, Prince (23 February 2018). "Dangote Group's revenue exceeds $4.1bn in 2017". Vanguard Nigeria. Retrieved 14 April 2018.
  2. 1 2 3 4 Okeowo, Alexis (7 March 2013). "Africa's Richest Man, Aliko Dangote, Is Just Getting Started". Bloomberg. Retrieved 25 October 2016.
  3. ↑ "LIONS ON THE MOVE II:REALIZING THE POTENTIAL OF AFRICA'S ECONOMIES". McKinsey Global Institute. 7 September 2016. Retrieved 20 April 2018.
  4. ↑ "Dangote pipeline job in Nigeria a welcome boost for COOEC". Energy mix report. 16 December 2016. Retrieved 26 July 2018.
  5. 1 2 3 Akingbade, Akinkunmi (29 September 2016). "As things stand, Nigeria will not achieve its 2023 sugar self-sufficiency plan". Ventures Africa. Retrieved 25 October 2016.
  6. 1 2 Nsehe, Mfonobong (2 April 2015). "Africa's Richest Man Aliko Dangote Enters Joint Venture With Italian Giant Saipem". Forbes. Retrieved 25 October 2016.
  7. ↑ Nsehe, Mfonobong (4 September 2016). "Africa's Richest Man Aliko Dangote To Invest $170 Million In Rice, Sugar Production In Nasarawa". Forbes. Retrieved 25 October 2016.
  8. ↑ Hirsch, Afua (3 April 2012). "Africa's richest man is cementing his place in history". The Guardian. Retrieved 25 October 2016.
  9. ↑ Dangote Group Ventures Into Fertilizer
  10. ↑ Saritha, Rai (23 September 2015). "Dubai-Based Billionaire Vaswani's Stallion Group Wants To Dominate Nigeria And All Of West Africa". Forbes. Retrieved 25 October 2016.
  11. ↑ "Adenike Koumpati, Dangote Industries Ltd: Profile & Biography". Bloomberg. Retrieved 2018-02-28.
  12. ↑ Dangote Group's Cement Operations Span Six African Countries
  13. ↑ The Zambian Cement plant has started its operations.Nigerian Tycoon To Invest $400 Million In Zambia Cement Plant
  14. ↑ Ochelle, Felicia Omari (9 November 2015). "Dangote Sugar has a new Managing Director". Ventures Africa. Retrieved 25 October 2016.
  15. ↑ "Billionaire's huge Nigerian oil refinery likely delayed until 2022: sources". Reuters. 10 August 2018. Retrieved 13 October 2018.
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