Billionaire industrialist Aliko Dangote has expanded his empire to Liberia, as Dangote Cement Liberia Limited has signed an agreement with the country’s Senate to invest in its cement industry.
Terms of the agreement
$41 million is expected to be invested by Dangote Cement in Liberia over the next ten years. The company will also be expected to maintain the roads leading to its terminals. The agreement will however be subject to review once in five years.
How both sides benefit
For Liberia, the agreement brings in much needed foreign direct investment. In addition to recovering from a civil war, the Liberian economy recently suffered a setback from the Ebola crisis. The host community for the factory, also stands to benefit from the company’s Corporate Social Responsibility (CSR) programmes.
Expanding into Liberia, also raises Dangote’s production capacity drawing it closer to its aim of being the biggest cement producer in Africa. Dangote cement currently produces about 40 million tonnes of cement per annum.
About Dangote Cement
Dangote Cement Plc was incorporated as a public limited liability company on 4th November, 1992 and commenced operations in January 2007 under the name Obajana Cement Plc. The company was listed on the Nigerian Stock Exchange (NSE) on the 26th of October, 2010. Principal activities of the company are the preparation, manufacture and distribution of cement and cement related products.
Dangote cement closed at N234 in yesterday’s trading session on the NSE. Year to date, the stock is up 37.94%. For the 9 months ended September 2017, revenue went up from N442 billion in 2016 to N603 billion in 2017. Profit before tax also increased from N148 billion in 2016 to N220 billion in 2017. Profit after tax also increased from N133 billion in 2016 to N193 billion in 2017. Earnings per share also increased from N8.13 in 2016 to N11.30 in 2017.
The company has recently been embroiled in a tussle with BUA Cement over the control of the Obu mines located in Okpella, Edo State.