Dangote Cement Congo

CONTRIBUTING TO ECONOMIC AND SOCIAL PROSPERITY

DANGOTE CEMENT CONGO

2 | Africa Outlook issue 83

CONSTRUCTION Dangote Cement’s operations in Congo are a vital economic and social contributor, the firm’s plant near Mfila being the largest ever opened in the country

Bringing the Dangote Way to Congo D

Writer: Tom Wadlow | Project Manager: Josh Mann espite facing political and economic instability in recent years, the Republic of Congo’s economy appears to be heading in the right direction.

According to the World Bank, GDP growth for 2019 is expected to be recorded at 5.4 percent, an upward curve predicted to continue into 2020 and 2021, gaining an average of 1.8 percent per year for the next two-year period.

This outlook is based on a strong oil and resource sector and a growth in investments – in 2018, around 17 percent of GDP derived from investment, a figure which is forecast to rise to 22.7 percent during 2019 to 21, assuming favourable oil prices and budget surpluses.

It also requires a stable political picture. November 2017 proved to be a significant turning point, after a ceasefire agreement was signed between the Congolese Government and representatives of the former rebel leader Frédéric Bintsamou.

Since then the country has benefitted from a period of peace and security, a status quo which is gradually seeing investors return to the country.

Indeed, the non-oil sector also has its role to play, and 2017 also marked the entry of Dangote Cement, West Africa’s leading cement producer, into the Congolese market.

“Operating as a business unit of Dangote Group in Congo, the largest conglomerate in West Africa and one of the largest in the African continent, it is important for us to play our part in the ongoing development of the country,” comments Afroz Ansari, the company’s Country and Plant Director.

Africa Outlook issue 83 | 3

DANGOTE CEMENT CONGO

DANGOTE CEMENT IN NUMBERS Dangote is West Africa’s premier and largest producer of all grades of cement, from general purpose all the way through to highperformance Portland cement of strength class 52.5.

Below are some key facts and figures:

>24,000

EMPLOYEES ACROSS THE REGION

$2.5bn

REVENUE IN 2019

45.6mn

TONNES PER ANNUM CAPACITY ACROSS AFRICA

10

COUNTRIES WITH PRODUCTION OPERATIONS

32.5R, 42.5R, 52.5R

CEMENT BAG PRODUCT RANGES

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“We want to play a lead role in the writing of what is a constantly evolving development story here.”

Ansari is very well-placed to lead Dangote’s growth and progression in Congo. The industry expert has a long CV of experience spanning 40 years, working for numerous cement production firms across the likes of India, Saudi Arabia, Oman and Tanzania before joining Dangote in late 2018.

“After completing my university education, I opted to join the cement industry instead of the Indian railway sector,” Ansari recalls. “My first job in this space was as a trainee in production and quality control, gradually climbing up the ladder to reach a position of Plant Director/Country Director here in Congo.”

KEEPING CONGO BUILDING Ansari’s job is to ensure the continued success of the Congolese division.

Its cement plant is the largest ever to have opened in the country and is located near Mfila, situated on the road between Pointe-Noire and Brazzaville, Congo’s two major settlements and home to more than half of the population.

CONSTRUCTION

DANGOTE CEMENT CONGO Here, Dangote Cement Congo produces 1.5 million tonnes of high-quality cement per annum, complying with EN197-2011 and Congolese quality standards, and using the best analysers and equipment to be found in the industry.

“We at Dangote Cement pride ourselves on operating a unit with world class cement manufacturing technology,” Ansari adds. “This means having energy efficient mills, pollution control equipment, online quality control

systems and a best-in-class, industry leading operating system.

“I would go as far to say that our state-of-the-art technology is what sets us apart. We are able to produce the best available cement in the world thanks to continuous monitoring of all quality parameters of input. This occurs at each stage through cross belt and XRF analysers, using ROBO lab online sampling technology created by FLSmidth technology.

THE SEVEN SUSTAINABILITY PILLARS Dangote’s approach to business revolves around seven sustainability pillars, fundamentals which are measured and reported on regularly and comprehensively. These are: FINANCIAL: Achieve sustainable financial health through a business model that delivers strong returns to shareholders, whilst creating value for local economies by selling high quality products at affordable prices, supported by excellent customer service.

INSTITUTIONAL: Build a world-class institution centred around corporate governance best practices and sustainability principles that promote legal and regulatory compliance, transparency and business continuity.

ECONOMIC: Promote inclusive, sustainable economic growth, selfreliance, self-sufficiency and industrialisation across Africa by establishing efficient production facilities and developing resilient local economies in strategic locations and key markets.

CULTURAL: Embody our core values in day-to-day business, including a respect for cultural diversity and giving back to local societies. To be achieved through teamwork, empowerment, inclusion, respect, integrity and meritocracy within the organisation.

OPERATIONAL: Serve and satisfy markets by working together with partners to deliver the best products and services to customers and stakeholders through continuous product improvement, new business development, state-of-the-art technologies and systems to constantly optimise cost-efficiencies.

ENVIRONMENTAL: Create sustainable environmental management practices through a proactive approach to addressing the challenges and opportunities of climate change, while optimising performance in energy efficiency, water usage and emissions.

SOCIAL: Create a learning environment and platform for employees to grow and achieve their fullest potential, whilst adhering to the highest standards of health and safety. Curate sustainable prosperity in host communities through employment, skills transfer and entrepreneurial development.

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Puma Energy Puma Energy is a leading global energy business and supplies, stores and distributes petroleum products in 48 countries across six continents.

Founded in 1997, Puma Energy has its headquarters in Singapore and Geneva and regional hubs in South Africa, Puerto Rico, Australia and Estonia, and employs over 8,000 people globally.

Puma Energy has a network of 100 storage terminals, more than 3,000 retail sites, and a presence at over 80 airports. Our mission is to energise communities to help drive growth.

We focus on fast-growing markets where we supply quality fuels, oil products and invest in transformative infrastructure. Considering our global integrated supply system, we deliver high-quality products around the world safely, swiftly, reliably and at a competitive price.

Puma Energy Congo Brazzaville has 34 service stations that supplies high quality gasoline, diesel and lubricants.

CONSTRUCTION

Energising communities

Puma International Congo SA | 50, Avenue Felix EBOUE, zone Port Autonome de Pointe-Noire | Direct +242 06 660 84 10 | Mobile +242 05 051 51 50

The Dangote Cement Congo team

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DANGOTE CEMENT CONGO “Meanwhile, all operations from our central control room are coordinated using technology from Siemens – this is transforming our industry and differentiates us from other cement producers in Congo.”

The Mfila site is able to draw on 144 million tonnes of limestone reserves, a long-term resource that will be important as Congo and the wider region bids to increase infrastructure building to cater to fast-growing populations.

Indeed, all Dangote plants are designed to make higher-strength cements such as 42.5 and 52.5 grades – these will increasingly be required as the size and height of buildings increase in Africa’s growing and urbanising economies, Congo being one of them.

This, as well as the Mfila plant’s strategic location, feeds into another competitive advantage in the form of Dangote’s supply chain network.

“DANGOTE PLANTS ARE DESIGNED TO MAKE HIGHERSTRENGTH CEMENTS SUCH AS 42.5 AND 52.5 GRADES – THESE WILL INCREASINGLY BE REQUIRED AS THE SIZE AND HEIGHT OF BUILDINGS INCREASE IN AFRICA’S GROWING AND URBANISING ECONOMIES”

The group’s size and financial strength enable it to invest in strong distribution capabilities at costs unattainable by smaller and less financially secure competitors, and Ansari is quick to praise the critical role that all Dangote Congo partners and suppliers play in its ongoing operations.

“Be it procurement or sales and marketing, the company’s supply chain operations are of the utmost importance, and all the time interdependent across the length of the operation,” adds Ansari.

“Positive engagement with suppliers has and will continue to play a major role in success of our business. Local partners and import suppliers are identified and selected very carefully, and we always try to encourage the use of local companies where possible.”

A SUSTAINABLE, RESPONSIBLE FUTURE Such empowerment of local enterprise is typical of Dangote’s approach to doing business in Congo.

Not only are local staff being empowered and trained to take over plant operations from the Chinese firm which built it, they are also encouraged to give back to the local

CONSTRUCTION community in the form of clean-up activities and other programmes which make up Dangote’s corporate social responsibility strategy.

From conducting awareness and training schemes for neighbouring villages on education and health, to financing and supplying the construction of bridges, roads and school buildings, the company has been an active corporate citizen since arriving in Congo in 2017.

In the summer of 2018, for example, it helped deliver a brand-new school building in Mfila, a facility which is able to accommodate 245 pupils.

Dangote is also working hard on plans to develop a new hospital building in the area, a project which Ansari hopes will come to fruition within the next

In the summer of 2018 Dangote Congo Cement helped deliver a brand-new school building in Mfila, a facility accommodating 245 pupils year or so.

This invaluable community work all ties into what the company refers to as the Dangote Way, a modus operandi defined by seven sustainability pillars which are practiced at every level of the organisation.

Sticking to these principles will ensure the company leaves a positive lasting legacy on Congo, something which Ansari is determined to build in the coming years.

The Country and Plant Director outlines four major objectives Dangote will be working towards through the rest of 2020 and beyond, two of them being to maximise the capacity at the Mfila site through a growth in sales and to diversify the product portfolio with new products.

The other two targets centre on energy. Not only will Dangote begin to make use of alternative, non-coalbased fuels, it will also adopt enhanced energy conversation practices in a bid to become a more environmentally sustainable operation.

Ansari concludes optimistically: “Growth in regional demand is expected to be at around eight percent on a year on year basis – local as well as regional demand will be driven by government spending on infrastructure development.

“Dangote will be striving to sustain and grow with improving operational efficiencies and cost management, despite low cement market demand versus production capacity. We will continue to improve our operations with continuous engagement of all internal and external stakeholders to ensure a long, prosperous future.”

DANGOTE CEMENT CONGO Tel. +242 057999191 dangote.congo@dangote.com www.dangote-group.com

DANGOTE CEMENT CONGO Siege social : sis à Ndingui, Usine Dangote, RD21 (Bouansa – Mouyondzi), Département de la Bouenza - BP 1103, Rep. du Congo Tel. +242 057999191 dangote.congo@dangote.com www.dangote-group.com PRODUCED BY AFRICA OUTLOOK MAGAZINE