Dangote Industries to Acquire Ships for Cement Exports

Aliko Dangote's Dangote Industries Limited is planning to acquire vessels to facilitate the transportation of its industrial products, particularly cement, to regional markets. The company, which is the largest industrial conglomerate in West Africa, faced challenges in finding a ship to transport just 1,000 tonnes of cement from Nigeria to Ghana.

Sada Ladan-Baki, head of international trade export at Dangote Cement, stated that the company is moving forward with plans to own ships to enhance its export capabilities. Since its inception in cement exports 16 years ago, the company has achieved an annual production capacity of 50 million metric tons.

However, logistical issues and high taxes, such as an 18% Value Added Tax (VAT) in Benin and Togo, have made road transportation costly. The collapse of Nigeria’s National Shipping Line in 1995 has contributed to the current vessel shortage, resulting in significant losses in freight earnings to foreign shippers.