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You are here:Home>>Afripol Presents>>Displaying items by tag: Dangote

Aliko Dangote,  Chief Executive Officer of Dangote Group and the richest African  with a wealth value of  $25 billion was in Kenya with President Jonathan of Nigeria. Dangote was part of business delegation that came with Nigerian president to Kenya on a official visit.

 

"(President Uhuru Kenyatta) particularly cited the ... the decision by Nigerian tycoon Aliko Dangote to invest $400 million in a cement processing plant as an indicator that an "exciting journey has begun"," according to official statement by Kenyatta's office.

 

Also in Kenya, when President Jonathan attended the  gathering of Nigerian citizens living in Kenya, Dangote in the meeting extol the favorable economic  policy of Jonathan administration that made it possible for his business to grow bountifully. Dangote in his words:

 

“I want to tell you what the president has been doing in Nigeria. He is very humble and may not want to sing about what he has been doing. We are very grateful for some of the policies he has introduced. As you all know, without the good policies of government, there is no way a person like me from a big town like Kano can rise from a humble beginning to become the 25th richest person on earth.

 

Without the policies of Mr President and also making sure that yes, there is consistency in the policies of government this could not have happened. If government has bad policies, the whole economy will crumble, and if they have good policies people will be able to prosper, and that is what it is now. Today, the company that we started, which was worth not more than four million dollars; by the grace of the Almighty and through the good policies of our government, this same company of ours is now worth 21 billion dollars.”

 

President Uhuru Kenyatta with his Nigerian President  Goodluck Jonathan (left) at State House in Nairobi, Thursday. Photo: Mbugua Kibera/Standard

 

Reuters reported that  Dangote investment in Kenya was not timeline:  " The statement did not give details on timelines, or the plant's capacity. There was no immediate comment from the company. Dangote Cement, Africa's biggest, said earlier this year it would expand its pan-African production capacity to 55 million tonnes by 2016, without giving a comparable figure.

 

Other countries the cement company has previously said it planned to venture into include Cameroon, Ethiopia, Zambia, Tanzania, Senegal and South Africa. Cement companies already operating in Kenya include Bamburi Cement, ARM Cement and East African Portland Cement."

 

It was further reported that "Kenya produced 412,529 tonnes of cement in July, up from 402,621 tonnes a month earlier, according to the Kenya National Bureau of Statistics. Cement consumption stood at 332,009 tonnes, from 341,942 tonnes a month earlier."

 

Earlier this year in May, Dangote had promised to invest  $5 billion in the rest of Africa building cement industries.

Commentary and Analysis by AFRIPOL


African capital markets and investment landscape are quite bullish for investors;  greater returns of thirty percent dividend or even more on average investment have been chronicled.  With this rosy development, African capital markets have been noticed by many money managers and portfolio strategists around the world as the blue chips become so hot and sensational.


“Investors have become increasingly attracted to Africa as it has begun to demonstrate strong economic growth, an emerging middle class, greater political stability and improved government balance sheets…The total value of deals in Africa by foreign investors has tripled to $183 billion in the past decade, with deal volumes up 109 percent at 2,417,” as reported by Reuters recently.


Nigerian Stock Exchange (NSE) is without exception; its returns have been phenomenal particularly since the strategic intervention of Aliko Dangote.  It has been over a year since the election of Dangote, the billionaire industrialist as the President of the Nigerian Stock Exchange (NSE).  Council of 15 members of NSE unanimously elected Dangote last year in Lagos. Since his inception, the bullish Nigerian stocks are attracting both local and foreign holders especially traders from advanced economies.

 

When investors and money managers were inquiring about Nigerian Stock Exchange, AFRIPOL did not hesitate to speak bountifully and proudly of NSE especially on the seasoned and strategic leadership of visionary Aliko Dangote.

 

“No other Nigerian has done more than Alhaji Aliko Dangote for entrenchment, consolidation and promotion of capitalism, market economy and free enterprise particularly in Nigeria and Africa in general. The great thing about Aliko Dangote is his commitment to Nigeria and Africa. Most of his investments are in Africa and with that he has shown that Nigeria and other African countries can be lucrative for investments due to large returns from them,”  as was noted by Emeka Chiakwelu, Principal Policy Strategist at AFRIPOL.

 

One year after the return of Aliko Dangote as the President of Nigerian Stock Exchange (NSE), it has appreciated tremendously to a staggering seventy five percent worth.  It may sound incredible but it is a reality. Nigerian Stock Exchange capitalization has appreciated by N5.183 trillion, from low N6.712 trillion to a high N11.895 trillion.

 

The great leap of NSE capitalization has been attributed to splendid and great leadership rendered by  Aliko  Dangote . Every investor has gained from the bullish NSE including Dangote that has seen his fortune raised to $20 billion, when his majority stocks of 93 percent in  Dangote Cement appreciated by three-fourths in the first quarter of 2013.

 

Such an astounding wealth, a $20 billion fortune has never been reordered by any entrepreneur in African business and entrepreneurial  landscape. In the global ranking of wealthiest people,  Dangote is now among the top 25 richest individuals world over.

 

The bullish “Aliko’s Dangote’s 93% stake in the cement company is now worth $19.5 billion. Add this to his controlling stakes in other publicly-listed companies like Dangote Sugar and National Salt Company of Nigeria and his significant shareholdings in other blue-chips like Zenith Bank, UBA Group and Dangote Flour; his extensive real estate portfolio, jets, yachts and current cash position, which includes more than $300 million in recently awarded Dangote Cement dividends, Dangote is now worth more than $20 billion” as Forbes magazines noted.

 

Dangote is among the most patriotic Nigerian and African business tycoons. He is always talking and reasoning on how his investments and wealth can benefit Nigeria and Africa. He is a capitalist with a patriotic conscience and he is showing and proving that further wealth creation is viable with a patriotic underpinnings.

 

Dangote invests heavily in Nigeria and Africa, such a corporate responsibility he assigned to himself, has revealed that he stand with Africans in the struggle to improve living standard and ameliorate poverty that is engulfing the continent.

 

Capitalists, investors and business executive move their capital and liquidity around the world in search of higher dividends, and it be must publicize that Africa is the place-to-go-to.   Dangote consistently put his money in Africa and his investment is apparently growing and he has become an example of the possibility of wealth growth in Africa.

Dangote has literally become the face of pragmatic Africa with the investments he scattered around Africa. He has set the pace and has become an example for many other investors who are hesitant about sending their capital and investments to Africa.

 

Dangote just recently pledged to invest $15 billion in Africa by 2018. His investments are staggering and numerous including his company investment of $8 billion to set up oil refinery and $2 billion in fertilizer plant in Nigeria. All these investments are great job providers, thereby reducing unemployment and lawlessness in Africa and Nigeria in particular.

 

For the realization of the African century in 21st century, Africa needs indigenous and foreign investors who are willing to seize the numerous business opportunities offered in Africa. Dangote has shown the way and maybe others will follow his footsteps.

Aliko Dangote, Africa’s wealthiest man, says he has negotiated loans of $4.25 billion from banks to build a refinery to help the continent’s largest crude oil producer reduce gasoline imports.

 

Refining “is an excellent business to get into,” Dangote said yesterday in an interview with Bloomberg TV’s Ryan Chilcote in Cape Town, where he was attending a business forum. “We have already secured $4.25 billion -- two offshore banks and the rest are Nigerian banks.”

 

 

Nigeria, a member of the Organization of the Petroleum Exporting Countries, imports about 70 percent of the oil products it needs to meet domestic requirements. The nation’s four refineries process less than the 445,000 barrels a day of capacity because of aging infrastructure and poor maintenance. The country exports about four times that volume in crude oil.

 

“Moving into the oil refinery business is smart as there is a clear need for investments in this sector to help the country achieve its GDP growth potential,” Andy Gboka, an analyst at investment bank Exotix Ltd., said by phone from London today. “The country relies on imports for its own oil consumption while the country is an oil producer. This is something which is quite weird if you’re to look on a world-wide basis.”

Dangote is Africa’s richest person, with an estimated wealth of $20 billion, and the 34th wealthiest person globally, on the Bloomberg Billionaires’ Index. Dangote controls Dangote Cement Plc (DANGCEM), Africa’s largest producer of the building material, through Dangote Group.

 

Cement Production

The refinery would be located in the southwest of Africa’s most populous nation and would be able to process 400,000 barrels of crude a day, Sani Dangote, vice president of the Dangote Group, said in an interview on April 17.

 

Dangote Cement will probably list shares in London in the fourth quarter of 2014 or first three months of 2015, Dangote said. The share sale would dilute Dangote Industries Ltd.’s ownership in Dangote Cement to about 70 percent to 75 percent, he said. Dangote Industries is controlled by Aliko Dangote.

“The company doesn’t need money,” Dangote said. “There is quite a lot we would leave on the table” if the shares were sold today, he said.

Dangote Cement is the biggest company by market value in Nigeria. It closed trade yesterday at 175.06 naira in Lagos, giving it a market value of 2,983 billion naira ($18.9 billion). The stock has gained 37 percent this year.

 

Visible Projects

The company plans to boost cement production to about 65 million metric tons to 70 million tons annually by 2015 from about 20 million tons now, he said. Operations will start in Cameroon, Zambia and South Africa in 2014, and in the Democratic Republic of Congo in 2015, Chief Executive Officer Devakumar Edwin said on April 25.

Dangote Cement will boost its total annual output to 55 million tons by 2015 based on its visible projects in Africa, Edwin said April 25.

 

“I think 65 to 70 million tons is a bit optimistic,” said Gboka. “You also have countries like South Africa, Ethiopia and Tanzania where Dangote doesn’t really talk about the competition on the ground and you can be sure in these countries you have strong competitors which are also strengthening their production capacity.”

A new plant in Senegal was unable to start production as scheduled in the first quarter because of a dispute over the land title, Dangote Cement said last week. The company said it’s working on an “acceptable solution” to the dispute that would allow the site to begin operations within weeks.

Dangote said he will announce an additional $350 million investment in Zambia today, raising the investment in a cement plant there to about $750 million. The plant will produce about 1.5 million tons a year.

 

To contact the reporters on this story: Ryan Chilcote in Cape Town at This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; Andres R. Martinez in Cape Town at This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; Chris Kay in Abuja at This e-mail address is being protected from spambots. You need JavaScript enabled to view it and Nasreen Seria at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tuesday, 23 April 2013 15:43

Why is Dangote neglecting Igboland?

 

According to one of Nigeria’s uncelebrated writers, Obi B. Egbuna, what is important in life is not what name a man is called but what difference his being alive makes to the world around him. Last week’s announcement that Africa’s richest man, Alhaji Aliko Dangote, would build an $8bn refinery in Nigeria by 2016 was another difference or value-added to the world around him, which in this case is Nigeria. Last week also, Nigerian actress, Omotola Jalade-Ekeinde, was named among the World’s 100 Most Influential People, which was another difference made to the world around her.

 

In contrast, the news concerning our politicians, public office holders and the impact of bad governance which made headlines included: Ex-minister misappropriated N3bn contract fund – EFCC; MEND destroys oil wells, threatens to bomb mosque; ACN, Presidency clash over Jonathan’s Lagos visit; Gunmen sack two Plateau villages; Ejigbo local council chairman kidnapped; US Report: There is massive corruption in Nigeria.

 

All this buttressed the long-held view that while politicians and public servants (in addition to the impact of their bad governance) cause Nigeria a bad image and retrogression, any time there is a piece of good news or an image-boosting incident in Nigeria, it usually emanates from individuals rather than government officials. In fact, all the international awards and honours or milestones achieved by Nigeria – including the only Nobel Prize – were achieved by individuals, many of whom achieved such fame and recognition without any contribution from the Nigerian government or any public servant.

 

The news story on Dangote explained that the new Dangote refinery is expected to refine around 400,000 barrels of oil per day, thereby almost doubling Nigeria’s current refining output. Even though Nigeria’s four refineries have the combined capacity to produce about 445,000 barrels per day, regrettably, they produce far below their capacity because of decades of neglect and mismanagement. That was Dangote’s subtle way of announcing that even though he is Africa’s richest man with a value of $16.1 billion, according to Forbes estimates, anybody who is planning to beat his wealth in Africa should work extra hard.

 

But beyond Dangote’s wealth, what I find pleasantly strange is his patriotism which makes him to invest not just in Nigeria but in different parts of Nigeria, unlike most other Nigerians. With all sense of modesty as an Igbo, I have discovered that the only ethnic group whose citizens invest in all parts of Nigeria beyond their own ethnic group and the former and current capitals of Lagos and Abuja are the Igbo. Nigerians of other ethnic groups can easily and freely establish factories or buy property in the United Sates, the United Kingdom, the United Arab Emirates, and other countries, but when they want to invest in Nigeria, they ensure that it is either within their ethnic group or in Lagos or Abuja. These are the areas they consider safe, where they will not lose their investments in the event of a crisis or the break-up of Nigeria. So, contrary to the pretence of most Nigerians about a long-term belief in one Nigeria, they really do not believe in it. You can only invest in non-movable structures in a place where you believe in: a place you are convinced that your investment is safe in the long run.

 

Most non-Igbo Nigerians who live in other areas outside their ethnic zone go into such towns with a bag containing their personal effects, live in rented apartments, if they are entrepreneurs – which they are seldom not — they transact their business in rented shops, sending their profit to their ethnic zone, and, at the rumour of any crisis, they flee from wherever they are at that material time, be it their office, shop or the market. Most times, they ensure that their family members are not with them in their place of domicile, so that it will be easy for them to flee without looking back. And if there is no crisis till they are transferred or they retire, they relocate to their state with a small bag, the way they came, their wealth in their bank account or in investments in their state of origin.

 

The same non-committal lifestyle is displayed by most of the foreigners who do business in Nigeria. They come in with briefcases, live in rented apartments away from the locals. If they are in paid employment, their salaries are wired directly to their home country, while some allowances are paid to them locally for their upkeep here. If they are employers of labour, they also come in with their briefcases, live in rented apartments away from the locals, and also ensure that – no matter how big their business is – that it is run from rented or leased premises. They send their profits to their home countries. They also ensure that their companies are privately owned so that they will not be accountable to the local investors regarding how they spend their profits. In addition, many of them over-shoot their foreign quota of expatriate staff and the use of foreign staff for positions that Nigerians can man, while placing the Nigerian staff on a salary scale lower than the foreign staff.

 

But these foreign companies are not to blame, for they know how lax our government is on issues that concern the interest of its citizens. As much as Ghana needs foreign investments, many Nigerians who set up businesses in the country have so many tales of how Ghana tightens its noose to ensure that those who invest in their land put the interests of their citizens and country as top priorities. There are stories from some companies that the profit they make from their company in Ghana cannot be taken out of Ghana.

 

It is only the Igbo that believe that the land where they live and do business should also be developed. Even though they had suffered great losses in business during the Nigerian Civil War of 1967 to 1970 and continue to suffer such losses at times of religious and ethnic crises, they have continued to invest in the areas where they live. This behaviour has been described as foolish by non-Igbo and Igbo alike. But it has not made the Igbo to stop it. That does not stop them from buying or erecting property in their ethnic group.

 

However, there are a few non-Igbo that site their businesses in areas outside their ethnic groups, but most of them are in sectors where they cannot help doing so like telecoms, broadcasting, oil, etc. But such people also need to be commended for taking such risks and investing in their fatherland.

 

Dangote’s case is so significant not to be noticed. Even though he is from Kano State in North-Western Nigeria, his companies are located in Obajana, Kogi State; Ibese, Ogun State; Ilorin, Kwara State, Apapa, Lagos State, Calabar, Cross River; Numan, Adamawa State, etc. Now that he is about to go into oil refining, he will be investing in a part of Nigeria and creating many jobs for Nigerians and helping to solve our refined petroleum products. It is, however, curious that Dangote has not sited any of his factories in Igboland, the land of the people he shares business DNA with. He may need to explain if this is deliberate and coincidental.

 

Dangote has been criticised for making his money through his closeness to the governments in power. He has been criticised for fighting his business opponents with ferocity. If such is true, it is not his fault but the problem of our country that laws that protect businesses from cronyism and monopolistic competition are not enforced.

 

The worst injustice the looters of our commonwealth do to Nigeria and Nigerians is that they siphon our national wealth out of the country and invest same in countries where they add no value to us. Many of them hide these funds in Swiss banks, some of which are not known to their families, and at the time of their death, this money remains in Switzerland, helping to oil their economy while our economy bleeds.

 

But Dangote sinks his money into our economy in different parts of the nation, thus affecting lives and oiling our economy. Therefore, the conferment of the national honour of Grand Commander of the Order of Niger – second only to the Grand Commander of the Federal Republic — by President Goodluck Jonathan on him in 2011, was not misplaced.

 

On a lighter mood, Dangote means in Igbo: “Dan, please buy”. It could have also been a corruption of the Igbo expression “Di anyi, gote,” which in English means: “Dear, please buy”. It may not be asking for too much if Dangote is urged to conduct a DNA test and make the result public. This writer will not be surprised at all if the DNA result shows that somewhere in the past, one of his forebears may have been Igbo. Be that as it may, Dangote will do well by remembering to site one of his factories in Igboland. That way, Ndi Igbo can indeed “gote” from his vast business empire.

 

But I pray that unlike the late Chief M.K.O. Abiola, he would not accept to be lured into partisan politics.

Azuka OnwukaAZUKA ONWUKA ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it )

 

 

The Chairman and Chief Executive Director of Dangote Group, Alhaji Aliko Dangote has made a shocking disclosure that PhD and MBA Holders were among over 13,000 applicants who applied for the recent Graduate Executive Truck Driver in his company.

 

Dangote disclosed this Thursday evening during a mentorship chat with World Bank Youth Forum (WBYF) Coordinator, Mr. Rotimi Olawale with the support of the World Bank Country Director, Ms Marie Francoise Marie-Nelly.

 

Speaking to the surprised youthful audience, the business mogul said that the company only needed 100 drivers but was surprised to receive over 13000 graduate applicants and amongst them were about six Phd, 65 MBA, 649 Masters and over 8, 460 Bachelor degree holders.

 

He said what surprised him most was not the sheer number of the applicants but the quality and calibre of those that applied who equally graduated from reputable higher institutions.

 

"All these things are verifiable, and they all graduated from reputable institutions which is satisfactory; and our plan is to eventually make them self dependent", he said.

 

"Despite the fact that the drivers get trip allowances on each trip along with their salaries, the arrangement is that they will own the trucks at no interests or repayments after they must have reached 300, 000 kilometres, which is about 140 trips from Lagos to Kano and a hard working driver can complete in two years, while lazy ones can take maximum of four years", he explained.

 

Speaking further, Dangote stated that his company is already one of the largest conglomerates in Africa, and disclosed that the group's five-year target is to reach a net-worth of $75 billion capitalisation and among the top 100 companies in Africa.

 

He assured that the group, which have diversified into various trading and manufacturing subsidiaries can achieve the set target with just three of them including Dangote Cement, Dangote Sugars/Salt, and Dangote Flours.

 

The business icon used the opportunity to advise the youths to be focused, forthright and that determination to succeed with integrity is the key to a sustainable wealth.

 

Source: ThisDay

 

“Dangote Cement listing on London Stock Market is not necessary” - Afripol

Aliko Dangote, the richest African capitalist is on a move and it is no surprise to global market observers and analysts that he is strategizing to list his $11 billion Dangote cement on London stock Market. With its vast expansion and investments beyond its primary base in Nigeria into the rest of Africa’s emerging markets, Dangote Cement without doubt needs more resources and funds to keep up with the pace of development.

 

Aliko Dangote plans to bring his profitable cement industry into listing on London Stock Market Exchange and Dangote Cement will be free-floating 20 percent stake in the company. The twenty percent is quite big compares to the five percent stake in Dangote Cement listed in Nigeria.

 

On a surface the participating and floating of the company’s stake is quite compelling because it will enable the company to do more with its expansion and also bolster the image of the company as an transnational corporation with a net benefit of a positive branding. But before the next year implementation of the plan, it is imperative that a profound feasibility studies must be undertaken and the right decision be made. A strategic outlook is necessary to avoid mishaps and pitfalls that may be encountered.

 

The exposure to London Stock Exchange will attract investors who can be brand critical and may not have patience when the stocks underperform in the cyclical downturn that defines market trends. With the company roots in Nigeria and Africa, a more adverse criticism and depressing analysis can follow put when inevitable mistakes are made which are inherent in management of any big corporation. Whenever political turbulence and disturbances occur in Africa, the prospective investors and stockholders may quickly sell and that will affect the bottom-line of the company.

 

Moreover the market for Dangote Cement is in Nigeria and Africa. Most of the demand for the Dangote Cement is in Nigeria and with the increasing expansion in Africa the demand for cement will continue to increase inorder to the feed Africa’s emerging markets.

 

Comparatively, the argument can be made that the market demand with the resources for the expansion can be found in Africa. The suggestive argument that resources for further expansion should be sought outside the shores of Africa has no legs. The money and capital for expansion of the growing Dangote Cement can be found in Nigeria and Africa. That does not translate that the scope and vision of the company should be limited to Africa but potential human and physical capital are not wanting in that part of the world.

 

Dangote Cement Plc : Next year EPS consensus revisions : last 18 months

 

The five percent stake in Dangote Cement in Nigerian Stock Market can be increase to up to 10-15 percent. Nigeria’s stock market has been bullish for Dangote Cement. Financial Times reported: “Dangote Cement’s net profit in 2011 is expected to be $790m on revenues of $1.5bn, according to guidance filed at the Nigerian Stock Exchange.”

 

The president of Dangote Group, Mr. Aliko Dangote was reported to have said that he desired to magnify his profit to enable him to upgrade the business into a huge multinational company and world’s largest cement industry with impressive profit. Yes, it is doable in Africa with sound management and strategic planning.

 

Emeka Chiakwelu, Principal Policy Strategist at Afripol, outlined the operational standing that, “African market can give the company the fund, resources, capital and the market to realize its ambitious project. But the company must be ready to work with both small and medium capital markets in the continent without looking outside the shores of the continent.”

 

A while ago, Dangote Cement opened a billion dollar cement industry at Ibese, Ogun state in Nigeria. With this investment resource, enormous profit can be made as the demand for building materials are edging up in the region. As result of demand of cement in Nigeria and Africa as economic growth in non-oil sector of the economy bulges, the accumulating profit will increase and market will be highly appreciated. The profit can be diverted for further expansion especially in research and development.

 

“With the economic growth of Africa hovering above five percent and Nigeria’s GDP edging up to seven percent for 2012, Dangote Cement can grow without seeking resources from London Stock Exchange,” as Chiakwelu pointed out.

 

“And the company’s expansion and building of cement industries in the eight African countries should not necessarily be simultaneous but can be realized with one construction after another,” Chiakwelu concluded.

 

Africa Political and Economic Strategic Center (Afripol) is foremost a public policy center whose fundamental objective is to broaden the parameters of public policy debates in Africa. To advocate, promote and encourage free enterprise, democracy, sustainable green environment, human rights, conflict resolutions, transparency and probity in Africa. http://afripol.org. This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

Dangote Cement At a Glance:

Market Cap $12.51 B

Industry: Construction Materials

Country: Nigeria

Chairman/President: Aliko Dangote

CEO: Jagat Rathee Rathee

Employees: 3,468

Sales: $1.27 B

Dangote Cement Plc is a Nigeria-based company active in the building materials industry. The Company is primarily engaged in the operation of production facilities for the preparation, manufacture, control, research and distribution of portland cement and related products. It operates Obajana Cement Plant, which includes a captive gas power plant; a gas pipeline; a limestone quarry with associated conveyor belt; a dam impounding a reservoir with a total storage capacity of 5.1 million cubic meters and a housing complex. The Company also manages cement production plants in Gboko and Ibese, as well as four terminals, two in Lagos and two in Port Harcourt, through which it imports and bags cement. Dangote Cement Plc is a subsidiary of Dangote Industries Limited, which owned 99.95% of its issued share capital as of December 31, 2009.      -  Forbes Magazine

One-billion-dollar cement opened by Dangote Group was commissioned by President Goodluck Jonathan

 

Dangote Group opened a  one-billion-dollar cement industry at Ibese, in southwestern Ogun State. The chairman of Dangote Group is Mr. Aliko Dangote, a business magnate and seasoned capitalist has always been a committed investor particulary in Nigeria and Africa in general. With one-billion-dollar investment in Nigeria, it will kiick-off the drive for others to follow the foot steps of Dangote Group. This is one of the largest investment in the non-oil sector of the economy and this is significant to the economic wellbeing of Nigeria, as the country struggles to diverify its oil based economy.

 

In his own words the chairman of Dangote Group  Mr. Aliko Dangote said, "We are working towards making the company one of the eight biggest producers of cement in the world and with the commissioning of the Ibese plant, Nigeria has been transformed from major importer of cement to self-sufficient in production and export."

 

 

Nigeria's President Goodluck Jonathan was at hand to commission the Ibese cement plant and he was pleased with the investment. President Jonathan was quoted in a AFP report, "Whenever you call me to come and commission new investments, I will come again because these are the kind of stories we want to hear in Nigeria."

 

Nigeria needs a good news which has  not been coming lately, with the social unrest fueled by MEND and Boko Haram the country has been rocked with uncertainty. Inspitte of the social unrest the country's economy is expected to grow robustfully in 2012 at rate 6.7 percent to 7 percent.

 

The great thing about the one-billion-dollar cement plant is the job's avaliability and that will help to lower unemployment in the area. The new plant at Ibese will be producing six million metric tonnes of cement yearly and  together with Dangote Group other two cement plants,  the company will increase its  annual production capacity to 20.25 metric tonnes.

 

Wednesday, 23 November 2011 18:01

ALIKO DANGOTE: AFRIPOL PERSON OF THE WEEK

 

DR. ALIKO DANGOTE: AFRIPOL PERSON OF THE WEEK

Aliko Dangote is the brainy Nigerian based entrepreneur, the founder, CEO and president of Dangote Group. He is an industrialist, a manufacturer of commodities principally food and cement. The head office of Dangote Group is in Lagos, Nigeria but company's prowess is felt across Africa and beyond. Dangote can be described as the King of cement industry due to his vast, enormous and extensive investment in cement manufacturing throughout Africa.

No other Nigerian has done more than Alhaji Aliko Dangote for entrenchment, consolidation and promotion of capitalism, market economy and free enterprise particularly in Nigeria and Africa in general. With his industry, business acumen and dedication comes a great dividend and returns that has made Dangote the richest man in Nigeria and Africa. The world renowned capitalistic magazine Forbes has quantified his personal wealth at a tune of $10.1 billion and that is not bad at all for a person who started a business from a loan he got from an uncle. For his vanguard in business and investment in Nigeria, President Goodluck Jonathan awarded him Grand Commander Order of Niger,GCON, which he richly deserved and merit.

Forbes wrote that the "Nigerian commodities titan Aliko Dangote is also Africa's cement king. In late 2010, he listed Dangote Cement on the Nigerian Stock Exchange. The company integrated Dangote's cement investments across Africa, including Benue Cement, formerly listed on the Nigerian Stock Exchange. It's now the largest company on the Nigerian exchange, with a market capitalization of $10 billion. In August, Dangote received approval from the Central Bank of Nigeria to invest $4 billion to build a new cement facility in the Ivory Coast. He's also building a $115 million cement plant in Cameroon, and owns plants in Zambia, Senegal, Tanzania and South Africa, among others. Dangote started trading commodities more than three decades ago after receiving a business loan from his uncle. He then built the Dangote Group - a leading West African conglomerate with interests in cement manufacturing, sugar refineries, flour milling and salt processing. Venerable philanthropist has given away millions to education, health and social causes."

President Jonathan decorating DangotePresident Jonathan decorating Dangote with award

The great thing about Aliko Dangote is his commitment to Nigeria and Africa. Most of his investments are in Africa and with that he has shown that Nigeria and other African countries can be lucrative for investments due to large returns from them. Dangote is the largest private employer of labour in the continent and jobs given has aided to slow down rampant unemployment facing Nigeria and Africa. This has given hope to the youths and has sown the seed of fruitfulness in the emerging economies of Nigeria, Senegal, Zambia and many others in Africa. Dangote can now become a tril blazer, a role model to aspiring business executive and many rich Africans that they can invest in Africa's market. Dangote is the greatest rebranding that Nigeria needs because he has shown to the whole world by his handwork and patriotism that Nigeria and indeed Africa are ready for 21st century, that a century of innovations and possibilities can be spearhead by Nigerians and Africans.

For his unflinching patriotism, business commitment and investment in today and tomorrow’s Africa's, the board and staff of Afripol Organization chose the business giant and magnate ALIKO DANGOTE, THE PERSON OF THE WEEK.

 

Dangote and Adenuga as symbols of Nigeria’s growing economy

The two giant Nigerian business executives Aliko Dangote and Mike Adenuga making the powerful list of Forbes 2011 Billionaires of the richest people in the world is an omen of deepening Nigerian capitalistic economy. Nigerian economy is making an impressive growth that it can produce two-ranked of the richest business executives in the world.

Aliko Dangote, the Group President/CEO of Dangote Group ranked as the richest Nigerian and African with a net fortune quantified at $13.8 billion. Mike Adenuga, founder Globacom made The Forbes 2011 Billionaires’ List for the first time with a net worth of $2 billion, which is impressive and massive amount of wealth by any standard.

Although many were speculating that Adenuga’s worth was under quantified in the Forbes ranking. Mfonobong Nsehe‘s piece posted at Forbes blog had a quote from an individual in Lagos, "Globacom has 20 million subscribers- almost as much as MTN [another wireless carrier] does. MTN is worth $30 billion. Mike Adenuga owns Globacom. How can he be worth only $2 billion? It is not possible. Have you forgotten that he also owns Equatorial Trust Bank- Nigeria’s largest privately held bank? Don’t you know that he owns Conoil Producing- Nigeria’s first indigenous Oil exploration company? Do you know that he owns the highest stake in Conoil Marketing? $2 billion is too small. If Mike Adenuga is poor, he’s worth at least $5 billion. You people should increase his net worth."

With $2 billion worth or more it is a herculean achievement to be at a pinnacle of capitalism in the global ranking of fellow capitalists and investors. That is a significant and enduring attainment by a Nigerian based capitalist.

Emeka Chiakwelu, principal policy strategist at Afripol commented on the growing impact the billionaires are having on Nigeria’s image and economy, "With business executives and billionaires of Alhaji Dangote and Mr. Adenuga statures, Nigerian image is being remake as a destination for capitalism, profit and land of investments. This is great for our country Nigeria, it will help to rebrand Nigeria and attract foreign investors."

The most encouraging thing about the two richest Nigerians are their unflinching confidence in the economy of Nigeria. Another issue that worth to be recognized was that all their wealth was basically made from investing and growing businesses in Nigeria. This must send the right signal to both local and foreign investors that Nigeria is ready to grow their money and yield possibly the largest dividend in Africa if not in the whole world.

Nigerian economy has been growing impressively and it is the fasted growing economy in Africa. Nigeria‘s economy is accelerating at a growth rate of 7.4 percent in the first quarter of 2011. Although the vulnerability of rising inflation at above 13 percent is being monitored by Sanusi’s Central Bank of Nigeria (CBN) and will utilized all the effective monetary policies at his disposal to rein in the rising inflationary trends.

The Nigerian billionaires must not relent on encouraging economic expansion by committing to Nigerian and African economies which have been always their hallmarks. Aliko Dangote already "has started building investments in cement plants and terminals across Africa including Senegal, Zambia, Tanzania, Congo, Ethiopia, Cameroun, Sierra Leone, Ivory Coast, Liberia and Ghana," writes Tatiana Serafin in her Forbes’ blog.

According to Serafin’s piece, Mike Adenuga’s "Globacom launched services in Nigeria in 2005, in the Republic of Benin in 2008 and has licences to operate in Ghana and Cote d’Ivoire (with Togo and Senegal next). He took a big gamble laying a $1 billion undersea fibre optic cable, Glo-1, to link Africa with the rest of the world. (Partnered with Alcatel-Lucent) The connection will help lower prices for customers as well as help Adenuga expand more quickly."

The emerging Nigerian business executives and Nigerian universities especially the business schools should look up and willing to learn from the two most successful Nigerian billionaires. Our universities must create curriculums on teaching students the models of operations and methodologies employed by the business trail blazers.

The point here is that Nigeria is already showing its relevance as a powerful emerging market by the quality of business tycoons emanating from the second largest African economy.

Africa Political & Economic Strategic Center (AFRIPOL) is foremost a public policy center whose fundamental objective is to broaden the parameters of public policy debates in Africa. To advocate, promote and encourage free enterprise, democracy, sustainable green environment, human rights, conflict resolutions, transparency and probity in Africa. www.afripol.org

 

Saturday, 07 August 2010 04:42

NSE MUST BE REVAMPED AND REFORMED

 

 

Afripol Organization calls for recalibrating of Nigerian Stock Exchange (NSE).

 Nigerian Stock Exchange (NSE) for sometime now is encountering numerous problems ranging from illegal and inside trading to financial mismanagement. Stock Exchange Market in global financial circle is seen as the bellwether and presage of the health of an emerging economy like Nigeria, therefore it has become necessary, if not imperative that some sort of reform must be administered and instituted in order to revamp the exchange market

 For any nation that is serious about furthering capitalism on its soil, it must acknowledge the important role occupied by Stock Exchange Market for fuelling and financing industries in the capital market. Nigeria must be very concerned about perceived integrity and transparency of her financial and capital markets for her economic growth and full participation in the current global economy.

 Aliko Dangote, President of the Nigerian Stock Exchange (NSE) recently accused the institution of being financial strapped due to mismanagement of its fund. The president of NSE stressed that the poor management and paucity of fund do not give the leverage for NSE to meet its obligations to stakeholders in the capital market.

 NSE plays a vital role in an economy of our country especially Nigeria as an emerging economy must be careful about the image and the underpinning importance of its capital market. Nigeria cannot afford to undermine the trust of the global capital market traders. The consequence will encourage capital flight and withdraw of resources from the market.

"Dangote accused NSE’s management of dipping its hands into the finances of its subsidiary, the Central Securities Clearing System’s (CSCS) accounts to borrow N 900 million to support its cash deficit position.

 Dangote further revealed that the NSE is indebted to the tune of N 119.5 million to Accenture auditing firm and that it has decided to stop additional work on executive selection, trading platform selection completion and implementation of the operating model for which the Exchange engaged its services, until all outstanding invoices are duly paid."

 Nigerian Stock Exchange (NSE) must not be allowed to become a weakened institution; for the ramifications could cause enormous damage on the growing economy. The deterioration of NSE will retard economic development in Nigeria. NSE is the contact point that brings buyers and sellers of stocks through their registered brokers. The capital and money raised by companies from capital market helps to support research and development, financing of new business entities which bolster economic development.

Nigeria with a strong population base and an expanding middle class sector, nurses the vision of becoming one of the largest economies by year 2020. The NSE can play a vital role in Nigeria’s ascendency to a well managed and optimum productive economy. Moreover the foreign investors are attracted to economies where capital can be raised for growing their companies. Nigeria cannot transform her economic woes by solely on public sector; Nigeria needs private sector with its creativity to grow her economy and starting creating ample jobs for underemployed and unemployed. A strong, reliable and well managed NSE can lay the foundation and become the catalyst for economic growth for Nigeria’s emerging economy.

 

Afripol Organization recognizes the significance of a self- sustaining and a healthy capital market which is key ingredient for a well regulated commerce, trade and industry in a capitalistic economy. A flourishing economy needs a reliable Stock Exchange Market.

Vincent Ogboi, Senior fellow, economic and financial analyst on African affairs at Afripol, reaffirmed the urgency for reform: "A renowned Nigerian industrialist and President of NSE, Mr. Dangote, also an insider sounded an alarm bell that the Nigerian Stock Exchange is "broke". This coming form an inside player cannot be blown off as just another empty cry for investigation of perceived enemies. The culture of pervasive corruption that has gone unabated since Nigeria’s independence has predictably taken over and erodes the trust of many in the Nigerian Stock Exchange. Once again, hard working average Nigerians who are always asked to play by the rules, are left holding the short end of the stick."

Referring to the recent history of mismanagement of priorities at NSE, expert Ogboi stressed: "The Nigerian Stock Exchange, headed by Dr. (Mrs) Okereke, is widely known for corrupt practices that are never investigated even when evidence abound. The Present Nigerian President, Mr. Jonathan Goodluck, in a swift move realizing the possible damaging impact this could bring to the comatose and oil dependent economy, sacked Mrs. Okereke. Mrs. Okereke’s position has been very controversial especially in the last few years since she started dabbling into other private business ventures that are in obvious conflict with her position as the head of the Stock Exchange. Her closeness to previous and corrupt past Nigerian politicians has certainly not helped the situation."

Emeka Chiakwelu, Principal Policy Strategist at Afripol, supports reforming NSE, "For Nigeria to move forward with a robust economic development especially in the private sector a well regulated and financially managed NSE must be present. Our country must summon the courage to do the requisite reforming of NSE to bring about a revamped outcome."

Dr. G. Stanley O'Koye, chief medical correspondent at Afripol, added that reforming the NSE can be a great tremendous help to the quality and efficiency of health care delivery in Nigeria: "when we have a solid and reliable NSE, many start-up and newly emerging biotech companies and venture capitalists in the area of health and medicine can confidently go to capital market to raise money to embark on their health care ventures. Pharmaceutical and biotech companies producing drugs can easily raise capital to manufacture their brand name drugs in the country. Therefore a corrupt free NSE can significantly help to restore health industries as thriving entities. In addition, a corrupt free NSE will facilitate the establishment of publicly traded third party insurance or health management organizations (HMO), and hence promote the delivery of quality health care to Nigerians."

 

Africa Political and Economic Strategic Center (Afripol) is foremost a public policy center whose fundamental objective is to broaden the parameters of public policy debates in Africa. To advocate, promote and encourage free enterprise, democracy, sustainable green environment, human rights, conflict resolutions, transparency and probity in Africa.