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01 October 2019

Aliko Dangote, the richest person in Africa, is looking to expand cement
capacity on the continent by 29% to 62 million tons, entrenching his flagship
company’s position as the continent’s biggest producer.

He plans to add six million tons in
Nigeria next year, taking volume in Dangote Cement Plc’s home market to 35 million tons, he told
Bloomberg Television. The rest of the expansion is planned mainly in West
Africa, including Niger and Cote d’Ivoire.

Dangote told shareholders in June the
company plans to open plants in Nigeria that will allow it export clinker to grinding plants in Cameroon and West Africa.

Dangote, who is building one of the
world’s biggest refineries in Lagos, Nigeria’s commercial capital, in addition
to investments in gas and petrochemical plants, said he expects total group
revenue to grow to about $30 billion from $4 billion when the plants start
operations in the next 2 years.

Thereafter, plans include investing
about 60% of profit outside Africa, including the U.S. and the U.K. “Sometimes
in Africa you have issues of devaluation,” he said. “We want to really preserve
some of the family’s wealth.”

Dangote Cement reported 6% increase
in profit for the six months through June to 119.5 billion naira ($331
million), even as revenue fell 3% to 467.7 billion naira.

The stock climbed 0.5% to 151.50 naira at the close in Lagos, the most since Aug. 22. Dangote shares are down 20% this year compared to a 12% decline by the 156-member Nigerian Stock Exchange Main Board Index.

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