Displaying items by tag: Ghana

This week Aliko Dangote retired as the chair of Dangote Cement. It’s a big deal, as Dangote founded parent company Dangote Industries in 1981 as an importer of bagged cement and other commodities such as rice, sugar, flour and salt. Over 40 years later Dangote Cement is the biggest cement company in Africa with a reported capacity of 52Mt/yr, operations in at least 10 countries and annual revenues of US$2.3bn. Dangote personally has also become Africa’s richest inhabitant along the way. It’s an extraordinary achievement.

As CEO Arvind Pathak, said in the company’s half-year report, “We celebrate our president, Alhaji Aliko Dangote, who now steps down from the board, for his pivotal and transformative role in shaping the company’s growth, success, and lasting legacy. His visionary leadership, entrepreneurial spirit, and unwavering commitment laid the very foundation of our journey. Under his guidance, the company achieved remarkable milestones, expanded its footprint, and set new standards of excellence across the industry.” Dangote is aged 68 years and his successor as chair of Dangote Cement, Emmanuel Ikazoboh, is aged 76 years.

The key acquisitions started in 2000, when the company purchased a controlling stake in Benue Cement following its privatisation. Then, in 2002, it bought Obajana Cement and started up its first production line at the site by 2007. Obajana has since become the group’s largest plant in Nigeria with a production capacity of 16.3Mt/yr across four lines. The company listed on the Nigerian Stock Exchange in 2010. Dangote Cement set up other plants in Nigeria and the Cement Manufacturing Association of Nigeria (CMAN) declared that the country was ‘self-sufficient’ in cement in 2012. Dangote the cement importer had become Dangote the cement producer. Then it became Dangote the cement exporter when it established its first overseas cement terminal in Ghana in 2011. Finally, it became Dangote the cement multinational when production plants outside of Nigeria started to be built in the early 2000s with units in Senegal and South Africa starting up in 2014. Today, in 2025, Dangote Cement has operations in Cameroon, Congo, Ethiopia, Ghana, Senegal, Sierra Leone, South Africa, Tanzania and Zambia.

Naturally, one doesn’t build a conglomerate as large and successful as Dangote Industries without dividing opinion along the way. Issues on the cement side of the business include criticism of how Dangote managed to beat his rivals to buy government-run cement companies in the early 2000s. To be fair to Dangote though, other companies including Blue Circle and HeidelbergCement did the same thing at this time. Arguments about this issue resurfaced publicly in 2022 when the Kogi State Government took Dangote Cement to court over its ownership of the Obajana plant in relation to tax revenue.

Another issue in Nigeria in recent years has been repeated arguments about the price of cement. Despite the country becoming ‘self-sufficient’ in cement, the cost has prompted scrutiny by legislators. Meanwhile, Dangote Cement has continued to make handsome profits year after year. Outside of Nigeria, Dangote’s expansion plans haven’t always gone smoothly. Its plans to open a plant in Kenya, for example, appear to have been stymied repeatedly. Infamously, Dangote himself allegedly described Kenya as being more corrupt than Nigeria to Kenyan media. A long heralded listing on the London Stock Exchange never happened and acquisitions outside of Africa are yet to occur. Looking forward, future challenges include newer entrants into the Sub-Saharan African cement such as those from China. A sign of challenges to come include the pending acquisition of Lafarge Africa by Huaxin Cement as China continues to attempt to export its cement production ambitions.

As Aliko Dangote steps down as chair from his cement business, the potential for both his company and the continent it is based in remains high. Demographic factors favour economic growth in Africa in the 21st Century due to its growing population and need for development. This will require plenty of cement and Dangote Cement is well positioned to supply it.

And finally… some people take up gardening in their retirement. Should Dangote become bored in his retirement from the cement business though he could consider the example of the former CEO of Ireland-based CRH. It was announced last week that Albert Manifold has been appointed as the chair of oil and gas company BP. Dangote Group already operates an oil refinery. Perhaps future opportunities beckon.

Nigeria: Domestic sales revenue and earnings have driven Dangote Cement’s financial performance in the first half of 2025. Its sales revenue grew by 17.7% year-on-year to US$1.35bn in the reporting period compared to US$1.15bn in 2024. Earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 41.8% to US$618m from US$435m. Sales and earnings grew sharply at home in Nigeria yet they fell elsewhere in Africa. Sales volumes of cement dropped by 4.1% to 13.4Mt from 13.9Mt, with a minor decrease locally and a sharper fall in other countries.

Arvind Pathak, CEO of Dangote Cement, said “While group volumes declined… [due] to softer demand in key markets, we remain encouraged by the growth in our export business. Export volumes from Nigeria increased by 18.2%, with 18 successful clinker shipments made to Ghana and Cameroon. This demonstrates the growing importance of our pan-African footprint and our ongoing commitment to regional trade and self-sufficiency.

By region, the group noted that its sales revenue in Nigeria rose sharply driven by price adjustments to keep up with inflation. Exports from national operations increased by 18.2% to 671,000t. 481,000t of this total was sent to Cameroon and Ghana. In the rest of Africa the company blamed lower sales volumes on post-election uncertainties in Senegal and South Africa, and liquidity constraints in Ethiopia due to delays in the approval of the national budget.

Finally, it was announced that company chair and founder Aliko Dangote has stepped down from the board of directors. It celebrated his, “pivotal and transformative role in shaping the company’s growth, success, and lasting legacy.”

Ghana: Ghacem has launched ECO COOL, Ghana’s first eco-friendly cement, according to My Joy Online news. The producer says the new product reduces environmental impact while maintaining high construction standards.

At the launch event, managing director Frank Huber said “At Ghacem, we want to lead the path in sustainable construction. We’ve set a clear target — to become 100% CO₂ neutral by 2050. ECO COOL is designed for all building applications, but with significantly lower environmental impact.”

Ghana: Cement manufacturers have failed to comply with a Cement Manufacturing Development Committee (CMDC) directive to declare ex-factory prices for 50kg cement bags by 23 May 2025, in line with the Ghana Standards Authority Legislative Instrument 2491, which mandates the reporting of prices every month.

CMDC chair Alex Dodoo confirmed on 27 May 2025 that no firm had complied and said the committee would hold an emergency meeting to consider sanctions. “The law is clear, and we will not hesitate to apply the necessary penalties,” he said.

Ghana: CBI Ghana and joint venture partner Heidelberg Materials have commissioned the ‘world’s largest’ calcined clay plant in Ghana, according to an announcement by the German producer. The plant has a capacity of 400,000t/yr of calcined clay and uses local raw materials to reduce reliance on imported clinker.

Hakan Gurdal, member of the managing board of Heidelberg Materials, said “Based on calcined clay technology, we can now extend our offering of innovative, high-quality cement products, while reducing CO₂ emissions and utilising the rich local resources. The project has created over 300 local jobs."

Ghana: CBI Ghana has invested US$100m in a new plant in Tema to produce limestone calcined clay cement (LC3) using local raw materials, to reduce reliance on imported clinker.

Commercial director of Supacem Kobby Adams said that the Ghana Standards Authority’s adoption of the GS PAS 5:2024 LC3 standard enabled the launch, following collaboration with local universities and international partners. According to Graphic Business news, the current clinker scarcity and its escalating prices stemmed from a 6% currency depreciation between December 2024 and February 2025 and the evolving global market uncertainties, including an increase in clinker export prices from the Mediterranean.

The project reportedly created over 160 direct jobs through local sourcing and infrastructure development in Tema and Torgome.

Ghana: Cement dealers have raised concerns over a growing shortage of brands including SOL Cement, Empire Cement and Dzata Cement, according to Citi Newsroom. Dealers have cited a scarcity of clinker and rising port charges behind recent supply disruptions and price increases. One cement retailer, Augustine Aduful, said that they paid for cement but have been left out of pocket for two weeks. Ghacem, in particular, has reportedly been facing a shortage, with customers having to switch to alternatives like Diamond Cement.

Ghana Chamber of Construction Industry CEO Emmanuel Cherry said that Ghana cannot continue to rely solely on clinker in cement production and that the country should begin to look for viable alternatives.

Another retailer, Isaac Frimpong, said “The clinker shortage is being caused by overseas supply issues. Even the recent price hikes are tied to external factors. We hope that with government intervention, the situation will stabilise.”

Ghana: At a recent stakeholder meeting, Minister for Trade, Agribusiness and Industry Elizabeth Ofosu-Adjare instructed the Ghana Standards Authority (GSA) to shut down cement companies that produce substandard products, according to Adom Online.

“Close down companies that are defaulting with substandard products to stop production until they can prove they can consistently produce quality products,” Ofosu-Adjare said.

She added that price should not be used to justify poor quality cement and warned of the risks posed by substandard materials in public buildings like hotels. She pledged to conduct regular inspections of cement plants to enforce compliance.

The Cement Manufacturers Development Committee Regulation L.I. 2480 and the GSA Act 2022 allow the Minister and the GSA to revoke licences and halt the sale of non-compliant cement.

Ghana: Real estate companies say that the price of cement has continued to rise despite a new law intended to regulate them. A so-called legislative instrument (LI) was introduced in September 2024, according to CitiNewsroom. However, Samuel Amegayibor, the Executive Secretary of the Ghana Real Estate Developers Association, said at a property forum, “Since the LI on cement was passed, so far as we the users of cement are concerned, we haven’t seen anything different. Prices have gone up even from the day it was launched, it has gone up further.”

Originally the proposed law required that cement manufacturers should seek government approval before setting prices. However, this clause was removed following lobbying by cement producers and others. The LI was eventually passed after 21 parliamentary sittings.

Energy has been the theme for a couple of cement news stories of note from Egypt this week. The first concerns the government’s impending plan to centralise distribution of mazut (heavy fuel oil) to cement plants to help them cope with ongoing power shortages. Earlier in the week Cemex signed a deal with the Assiut Governorate to operate a second municipal solid refuse processing unit in the country. The company’s first Regenera facility, in Mahala, started operations in May 2024. Another story from mid-September 2024, along the same theme, covered the inauguration of an 18MW waste heat recovery (WHR) unit at Heidelberg Materials Egypt's Helwan Cement plant.

The wider story is that the country has faced so-called load shedding, or power rationing, since mid-2023 due to falling gas production, rising energy demand and negative currency exchange effects making it harder to buy fuel imports. The power cuts were extended in duration in July 2024 due to a heat wave. The government then said in late September 2024 that it is making investments to prevent domestic power cuts in 2025.

The cement stories mentioned above show some of the ways cement companies cut their energy costs. Two potential ways of doing this are to increase the use of alternative fuels (AF), such as municipal solid waste, or to install a WHR unit. Titan Cement, for example, reported AF thermal substitution rates of above 40% in Alexandria and above 30% in Beni Suef in the first half of 2024. The local press hasn’t reported power shortages amongst the country’s cement producers, but the plans to control the distribution of mazut suggest that either ‘something’ has happened or the government is trying to avoid ‘something.’ Readers may recall that producers have periodically faced step changes in power supplies over the years. In the mid-2010s, for example, lots of plants switched from heavy fuel oil and gas to coal. The energy price fluctuations following the start of the Russia - Ukraine war in 2022 then saw the price of coal rise.

However, what the foreign-owned producers have complained about in the first half of 2024 is the declining exchange rate of the Egyptian Pound. Cementir, Cemex and Titan Cement all noted this. However, Titan reckoned that International Monetary Fund and European Union investment had actually eased the economic situation in the first half of the year leading to an increase in the number of large construction projects.

One effect of the currency problems upon the cement market has been a focus on exports. At the start of September 2024 the Federation of Egyptian Industries said that national cement consumption in 2024 was expected to drop by 4% year-on-year to 45Mt. However, exports were projected to rise to 15Mt. The first and second most popular destinations so far in 2024 have been the Ivory Coast and Ghana. Yet, exports to Libya, the third biggest external market, may have had the biggest effect. These have been blamed for creating a shortage of trucks that was causing delays to the local construction sector. The round-journey from Egypt to Libya can take up to 12 days. This has left building sites bereft of raw material deliveries because all the trucks are elsewhere! Vicat acknowledged the growing importance of imports for its business in Egypt in its half-year report for 2024. It said that ‘sluggish’ domestic market conditions “were more than offset by growth in cement and clinker volumes for export to the Mediterranean and Africa regions.”

The wider picture of the cement sector in Egypt remains one of overcapacity with integrated capacity estimated above 70Mt/yr. The government introduced cement production quotas in mid-2021 and this stabilised prices (and profits). The recent state of the local economy may have strained this, but the latest round of external investment appears to have buoyed things for now. Although the effects of the Israeli military action in Lebanon may have unforeseen consequences upon neighbouring markets. In the meantime, cutting energy costs and growing exports offer two ways for producers to raise their profits.