Dangote Registers Two Companies in Kenya; 10% Stake owned by some “LOCAL SHAREHOLDERS”. To start operations in 2019/20
Dangote Cement has revealed that they have registered two companies in Kenya with plans to build two plants of 1.5Mta each, near Nairobi and Mombasa, to serve the local market.
The company, which is majority owned by Africa’s richest man notes that Kenya is an exciting market and that the country is high on its priorities. They now hope the two plants will be operational by 2019/2020. The two companies will separately deal with Limestone mining and the other cement production.
Interestingly, Dangote owns 90.00% of the two companies while 10.00% is owned by some“LOCAL SHAREHOLDERS”.
- Dangote Cement Kenya Limited 90.00%. (Cement Production)
- Dangote Quarries Kenya Limited (Limestone mining)
Dangote Cement also notes that they entered into an agreement with the Industrial and Commercial Bank of China to fund their expansion into the country at very attractive terms.
Currently, the company exports cement from Ethiopia to Kenya and other neighbouring countries such as Somalia and South Sudan, despite the distances involved.
“In the east Africa we have existing or planned operations in Ethiopia, Tanzania & Kenya. All these countries have ample native limestone, so all our facilities there will be integrated factories.” the company says in a report on its website.
In February 2016, Dangote marked its entry in the Tanzanian market with a 3.0Mta factory in Mtwara, on the south coast of the country. The factory, despite being the largest in the country, is also the furthest away from the key market of the capital, Dar es Salaam. The company says since the opening of the new plant, they now control nearly 30% of Tanzania cement market share.
As at the end of the 2016 financial year, Dangote generated revenues of approximately USD 111.2 Million from Ethiopia and USD 33.4 from Tanzania. Dangote’s pan African operations excluding Nigeria made a loss of USD 63.94 at the end of 2016.