The Dangote Group of Companies is a Nigerian multinational industrial companies, founded by Aliko Dangote. It is the largest conglomerate in West Africa and one of the largest on the African continent with over 30,000 employees and revenue base of about US$4.1 billion in 2017.
The company came into existence in 1981 as a trading enterprise, importing sugar, cement, rice, fisheries, and other consumer goods for distribution in the Nigeria market.
The group has since grown to become one of the leading manufacturing companies in sub-Saharan Africa since 1990s, starting with textiles, moving onto flour milling, salt processing and sugar refining. The company also produces cement, growing rapidly and moving into other African countries with a high degree of vertical integration.
The Dangote group of companies now has over 18 subsidiaries, operating in ten African countries with its headquarters in Lagos Nigeria.
The company is one of these subsidiaries that is listed on the Nigerian Stock Exchange, with its market capitalization amounting to about 20 percent of the total capitalization of the Nigerian Stock Exchange.
In 2016, Dangote signed a contract with CNOOC group 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.
The company has since dominated the Nigerian economy, concentrating in the importation of sugar, salt and rice and cement production business.
Dangote Group ventured into manufacturing in 1989 with textiles Mills Limited, operating two operations, a textile weaving mill in Kano and the Nigerian Textile Mills limited’s plant in Lagos.
In 1997, the group embarked on aggressive manufacturing of consumer goods like sugar refining and flour milling, following a decline of the textile sector. This development was a laudable achievement as it competed against imported products from Brazil and other Europe countries.
Today, Dangote has become the leading giant conglomerates as one of the biggest distributors of sugar in Nigeria since 1999 when it commenced operation. The strategy towards backward integration led to the establishment of a pasta plant and flour milling to supply raw materials for making pasta.
The group also invested in a cement manufacturing venture at Obajana, Kogi State, with an aggressive strategy. The Obajana plant began production with 5 million tonnes of cement. The group has since invested in another cement operation at Ibeshe, Ogun State to boost up the local manufacturing sector from about 2.5 million tonnes to about 8 million tonnes.
The group has also expanded beyond the shores of Nigeria with its strategy on continental expansion with the building and acquisition of cement plants in several African countries. The group also has subsidiaries in Benin, Cameroon, Ghana, Nigeria, South Africa and Zambia. Dangote Cement head office is in Douala, Cameroon.
Today, Dangote Group of companies is a diversified conglomerate, headquartered in Lagos, Nigeria leading in a range of products like cement, sugar, flour, salt, seasoning, pasta, beverages and real estate, with new projects in the development of oil and natural gas, telecommunications, fertilizer and steel in Africa.
Dangote Cement is undoubtedly the largest cement production company with a production capacity of 48.6 million tonnes per year across ten countries with a market capitalization of almost US$14 billion on the Nigeria Stock Exchange.
In December 2010, the group signed an agreement with the Government of Zambia to construct a US$400 million cement plant in Zambia. It was completed in 2015 and is located in Ndola.
The plant currently produces 42.5-grade cement to compete against the lower-grade but dominant 32.5 products in the market, the new plant is expected to have an annual output of 1.5 million metric tonnes of cement.
Dangote Sugar is another major subsidiary of Dangote, competing with Bua Refinery Ltd and Golden Sugar Co. Dangote Sugar is the largest sugar refining company in sub-Saharan Africa.
Oil and Gas Production
The Dangote group of companies has also diversified into oil and gas-related ventures, establishing a 3 million tonnes fertilizer plant, petroleum refinery capable of refining 650,000 barrels of oil and a petrochemical operation.
Dangote Refinery, when fully operational, will be the largest refinery in Africa.
In summary, we can proudly say that Dangote Group of Companies has remained a dominant manufacturing conglomerate in Nigeria and one of the largest in Africa continent. The group currently boosts of over 30,000 staff strength and generating over $41 billion dollars revenue base and contributing enormously to the economic development of the African continent as whole.