Dangote taps into Cameroon cement import ban to ramp up local production

Management of leading pan-African cement manufacturer, Dangote Cement plc, has assured the government of Cameroon that it would help shore up local production of the vital product following the ban on importation of cement into Cameroon.

The assurance came in the wake of the formal launching of the company’s 42.5 cement type into the Cameroonian market after a successful inauguration of the company’s 1.5m MTPA capacity cement plant in Douala.

The Dangote Cement management also told newsmen that it appreciated the gesture of the Cameroonian government and that the ban was a vote of confidence on the ability of cement manufacturers in the country, especially Dangote Cement, to meet and surpass local consumption demands.

Already, with the addition of the Dangote’s 1.5m MTPA, Abdulahi Baba, general manager/head of Cameroonian factory, said the three manufacturers of cement in the country were about surpassing local consumption demands and that Dangote management was already looking towards export prospects to neighbouring countries.

According to Baba, Cameroon with a consumption growth of 8 percent, and with a local production of 2.9m MTPA, the Dangote management was looking at export potentials in Chad, Central African Republic, Garbon, Equitorial Guinea and Togo, even as the company considersed future expansion.

The plant has one of the most recent facilities of ensuring that there are no dust emission during production, he said, saying the company has put strategies in place to achieve 30 percent market share, as there was also plans of achieving 30 percent export of total production.

“The demand is growing everyday because of the infrastructural developmental efforts of the government. We will take the advantage of the ban on cement importation here in Cameroon. We have structured distributorship system in place. Our route to market is very clear and defined. We are building a jetty so that we are not held down but have smooth distribution during congestion at the ports.

“We are set to achieve stability of operations in 2015 Q1, pursue aggressive market penetration and consolidation through appropriate above the line and below the line activities. 170 distributors have been selected after the interview process. 85 distributors will start, while the number will gradually increase with increasing production

“Mines at Tombel has been opened up and it is under exploitation. The Mines at Batoke would soon become operational. Exploration licence for Foumban deposit has also been secured. EIA and other activities for securing mining lease are being being processed. About 5,000 MT of pozzolana is stockpiled at the living area,” Baba said.

According to him, the company’s ex-factory price is the cheapest in Cameroon when compared with other products in the Cameroonian market, and Dangote Cement is cheaper than the 32.5 grade sold in the open market.

The product is of a very high quality but sold at a very cheap rate, Fonoggi Serge, managing director, ETS (distributor), said, saying “consumers and other dealers are already making demand for the commodity. I sell 20 tons daily and the acceptability of the product is rapidly increasing and it goes for between 4,000 – 4,500 CFA.”