Dangote Cement Plc, Africa’s largest cement producer, reported a remarkable year in 2024, with its Pan-African operations generating a robust N1.48 trillion in revenue.
This impressive 60% year-on-year increase underscores the company’s expanding footprint across the continent, with Ethiopia emerging as the standout performer and the most operationally profitable among its non-Nigerian ventures.
Despite a complex operating environment characterized by hyperinflation, currency devaluation, and geopolitical instability in several African markets, Dangote Cement’s Pan-African segment demonstrated underlying strength.
While overall Pan-African cement volumes saw a marginal decline of 1.1% to 11.1 million tonnes (down from 11.3 million tonnes in 2023) due to factors like adverse weather in Tanzania and political instability in Senegal and South Africa, the segment still contributed significantly to the group’s top line.
Ethiopia: A Beacon of Profitability
Ethiopia defied continental challenges to lead the pack, delivering the highest inflation-adjusted pre-tax profit of N122.5 billion and post-tax profit of N91.8 billion among Dangote Cement’s Pan-African operations. This strong performance highlights the strategic importance of the Ethiopian market to Dangote Cement’s continental ambitions.
Aliko Dangote, Chairman and CEO of the Dangote Group, has previously lauded Ethiopia as his “best investment destination,” citing the country’s improving investment climate. The company has further solidified its commitment with a planned $400 million expansion to revive a second production line at its Mugher cement plant in Ethiopia, aiming to double its annual capacity to 5 million tons. This expansion is expected to be operational within the next 30 months, reinforcing Ethiopia’s role as a key hub for Dangote Cement.
Broader Pan-African Performance and Challenges
The robust topline growth across the Pan-African segment was largely driven by price increases in selected countries and the positive translation effect following the devaluation of the Nigerian Naira. Pan-Africa EBITDA also saw a strong 30.9% growth to N345.3 billion in 2024, benefiting from a reduction in coal prices that positively impacted several operations.
However, the application of IAS 29: Financial Reporting in Hyperinflationary Economies in countries such as Ethiopia, Ghana, and Sierra Leone significantly affected the bottom line. These non-cash adjustments, coupled with elevated foreign exchange losses and rising input costs, led to a post-tax loss of N24.4 billion in the Pan-African operations for FY 2024. This loss further deepened to N110 billion in Q1 2025, compared to N36 billion in Q1 2024, primarily due to the ongoing impact of naira devaluation.
Despite these headwinds, Dangote Cement remains optimistic about its Pan-African portfolio. The company notes operational gains and structural improvements across key markets.
For instance, Cameroon saw a 2.4% rise in sales volume to 1.4 million tonnes, while the Republic of Congo’s sales climbed 8.7% to 878 kilotonnes, boosted by robust export demand to the Democratic Republic of Congo (DRC) and clinker exports to Cameroon.
Dangote Cement’s commitment to strategic investments and operational efficiency across its diverse African markets continues to underpin its long-term growth strategy, even as it navigates complex macroeconomic landscapes.
