Dangote Raises 2015 Spending on African Plants to Sh100 Billion

Dangote raises 2015 spending on African plants to Sh100 billion

Dangote Cement revised its 2015 spending plans to $1 billion (Sh100b) from the $700 million (Sh70b) estimated nine months ago after commissioning two new African plants in June, Nigeria’s biggest listed company said on Friday.

The company, also Africa’s biggest cement concern and majority-owned by billionaire Aliko Dangote, is expanding outside its home market and invested more than $5 billion in such projects in the past few years.

Dangote Cement said the contribution to sales outside its dominant Nigerian home market grew to 14 per cent of total revenue by June 30 from 3 per cent a year ago. It expects an increased contribution from operations in Senegal, Cameron, Ethiopia and Zambia by the second half of the year.

Dangote Cement commissioned operations in Ethiopia and Zambia last month, the company said in a presentation. It expects to begin production in Tanzania in September.

The clinker and limestone mixer said it had spent 100 billion naira ($502 million) this year by June 30. It budgeted to spend $1.4 billion as capital expenditure in 2014.

Gross debt increased to 309.2 billion naira by half-year from 242.6 billion naira in December, as it increased borrowing to fund capital expenditure. Dangote Cement reported a 20 per cent rise in first-half pretax profit on Thursday.

Reuters