1. Stating the case for investing in Nigeria
Tony Hadley, CEO, Dangote Cement

2. Contents The Dangote Group in Nigeria Profile Business sectors
Major Assets
The Nigerian operating environment
Economy
Opportunities
Challenges

3. The Dangote Group in Nigeria

4. Group Profile
Mission Statement – Touching the lives of people by providing their basic needs
Diversified business conglomerate focused on provision of essential goods (food and shelter)
Began life as a trading business (1985) and made a strategic decision in 1999 to transition to local production/manufacturing.
Recognition of the opportunity to develop value added local production capacity
Rapid growth into one of the largest conglomerates in Nigeria

5. Group business sectors
Cement - Manufacturing / Importing, Packing and Distribution
Sugar - Farming & Refining, Packing and Distribution
Salt - Refining, Packaging and Distribution
Flour & Semolina - Milling, Packing and Distribution
Spaghetti, Macaroni & Noodles - Manufacturing and Distribution
Polysacks - Manufacturing
Logistics - Port Management
Logistics - Transportation of Raw material and Finished Goods
Property Development
Oil & Gas exploration
Telecoms – 3G licence
Associated infrastructure

6. Major Assets (1)
Obajana Cement Plant – Largest cement plant in Sub-Saharan
Africa (5 Million tonnes of production capacity)

7. Major Assets (2)
Dangote Sugar Refinery Plc (Apapa, Lagos) – 1.44 Million tonnes
of annual refining capacity making it the largest in SSA.

8. Major Assets (3)
Savannah Sugar in Numan has 32, 000 hectares of cultivated land
and currently produces 150,000 tonnes of raw sugar per annum.
An upgrade is currently taking place to increase production to
600,000 tonnes per annum.

9. Major Assets (4)
Dangote Flour Mills plc has five flour mills in Nigeria producing
4,500 Metric tonnes of flour every day

10. The Nigerian operating environment

11. Economy GDP (PPP) of US$293 Billion Real GDP growth (2008) of 6.4%
Population (2008) – 143 Million
Oil and agriculture made up 69% of GDP in 2009 (37.3% and 31.7% respectively)
Non-oil sector growth outstripping real GDP growth (agriculture grew by 8% in 2007)
Predicted growth of over 3.5% in 2009, despite global financial crisis (IMF)

12. Opportunities
Cited by Goldman Sachs as one of ‘next 11’ countries expected to follow the BRICs into the top 20 world economies
Significant consumer market and growing middle class (143 Million population and growing)
Large natural resource reserves
Reform agenda
High Return on Investment (ROI)

13. Challenges
Infrastructure deficiency (energy, services and transportation)
Financial Sector – high cost of capital and short-term mindset
Lack of sufficient skilled local labour
Costly operating environment
A challenging environment, but one that rewards those committed to success

14. Conclusions Strong ROI for company’s committed to investment
Reform agenda creating a platform for enhanced operating environment
Growth despite global financial crisis
Opportunities across a range of non-oil sectors
Importance of local content and knowledge
The Dangote model demonstrates that success is achievable across a range of sectors