AFRICA, Sénégal: Latfallah Layousse reçoit la Légion d'honneur française

En remettant les insignes de chevalier de l’Ordre national de la Légion d’honneur à Latfallah Layousse, président directeur général des Cimenteries du Sahel (Cds), l’ambassadeur de France au Sénégal, Nicolas Normand a loué ses mérites. « Monsieur Layousse, des hommes comme vous, il y en a malheureusement trop peu. Tous les pays ont besoin d’entrepreneurs aussi travailleurs et qui réussissent aussi bien comme vous. Vous êtes un grand créateur de richesses, de développement et de travail pour la population », a dit le diplomate devant un parterre d’invités composés d’amis, de proches et de collaborateurs du récipiendaire. L’audace de M. Layousse a également été magnifiée par le diplomate français. Car, Latfallah Layousse a très tôt été un « capitaine d’industrie » à travers la création, en 1965, du groupe Fauzie Layousse spécialisé dans le génie civil. Plus tard naitront d’autres sociétés comme la Société sénégalaise d’exploitation de carrières (S.S.E. C), la compagnie générale d’exploitation des carrière (Co. Ge.Ca) avant de lancer, entre 2000 et 2008, le projet d’une cimenterie devenu, aujourd’hui, les Ciments du Sahel (Cds).   

Cette deuxième cimenterie sénégalaise dont le chiffre d’affaire global représente 120 milliards 

Fcfa, opère aujourd’hui au Mali et bientôt une nouvelle société sera implantée au Bénin.   Ces mérites et cette audace de cet industriel à la fois français et sénégalais ont justifié cette décoration. M. Layousse s’est dit ravi de cette marque de considération de l’Etat français à son égard, tout en estimant que cet évènement personnel sera, sans nul doute « l’un des moments les plus importants » de sa vie d’homme. « Recevoir cette distinction comporte, en vérité, plus de devoirs que de droits, plus de servitudes que de privilèges a-t-il dit. 

Tanzania: Tanzania to double its cement output.

Tanzania: Tanzania to double its cement output.

Tanzania’s total cement production is expected to more than double over the next two years, thanks to the new entrants which expect to amplify competition. The current four firms that produce Twiga, Simba, Rhino and Tembo brands have a combined installed annual capacity of 3.75 million tonnes and output is expected to reach 8.65million tonnes per year in 2015.

The new producers are Dangote Cement, Lake Cement, and Lee Building Material plus the existing firms’expansion expected to boost production by 4.9 million tonnes per annum. Tanzania Securities’ CEO, Mr Moremi Marwa, said the firms are taking advantages of increased cement demand pushed by construction activities that grew at an annual average rate of eight per cent over the past five years. 

“We expect local demand to grow at over 10 per cent if infrastructure investments are sustained at the current levels and the economic momentum remains as projected,” Mr Marwa said. The demand, currentlystanding at four million tones, has been growing at a compound annual growth rate of 10 per cent over the past five years to 2012. 

“We note that Tanzania is currently a net importer of cement, importing about 500,000 tonnes per annum or 12 per cent of the total consumption,” the CEO said in a cement analysis report. He added: “We estimate that current sector utilization of the installed capacity is 90 per cent, offering minimal room for upside unless the projected new capacity is added”.

The existing companies that are expected to increase capacity in the next one to two years are Tanzania Portland Cement Company (Twiga) 700,000 tonnes, Tanga Cement (500,000tonnes) and Athi River (Rhino) 1.2million tonnes. The new entrants are locally owned Lake Cement in which Banco of India has acquired 51 per cent stake.

The new joint venture formed a Greenfield plant to be erected in Lindi with an investment of 12.5 million US dollars. Plant which is scheduled to commence production next year has the capacity of 500,000 tonnes annually. The Nigerian Dangote Cement— an industryconglomerate—plans a two million tonne gas fired cement plant in Mtwara as part of their pan- African strategyto expand across the continent.

Another is a Chinese firm Lee Building Minerals that has started construction of a 12.5 million US dollars cement factory in Lindi with a capacity of 300,000 tonnes per annum. The key sector concerns, according to Mr Marwa, include the escalating energy cost, stable power supply; transportation related challenges and costs as well as competition from increased market shares going to new manufacturers, along with increased imports at low costs. 

AFRICA, Nigeria: New Capacity Lifts Dangote Cement’s Sales

Nigeria: New Capacity Lifts Dangote Cement’s Sales

The massive investment by Dangote Cement Plc (DCP)  has yielded fruits as the company’s  sale rose significantly  to 10.4 million tonnes in 2012.

DCP  increased its market share steadily during the year, averaging  57.1 per cent in 2012 compared with the 50.5 per cent achieved in 2011.
According to audited the results of the company for the  year ended December 31, 2012, the  improved  sales  led to an impressive performance, as it recorded a 14.7 per cent increase in the gross profit for the year.

The shareholders are also in for a good time as the directors recommended that they be paid  N3.00 per share for the reviewed period.

Commenting on the  performance, the  Chief Executive Officer of  Dangote Cement, Devakumar Edwin,  said a combination of some managerial strategies adopted in the face of import dumping which led to the glut in the year under review accounted for the impressive performance.

“DCP  achieved a strong increase in revenues and profitability in 2012 despite severe flooding that affected demand and a shortage of gas that affected margins.

“The group achieved several key objectives in 2012. In the first half of the year, we launched 11 million tonnes of new capacity that brought Nigeria to self-sufficiency in cement production. Because of our investments there is no more need for Nigerians to buy foreign cement.

”By the end of 2012 we were preparing to make Nigeria an exporter of cement to neighbouring countries and in the first quarter of 2013, we realised that goal, to the benefit of the Nigerian economy. Soon, we hope to be manufacturing cement in Senegal as we expand into other African countries to supply a basic but profitable commodity that is vital to Africa’s growth.

“Current trading is strong. We estimate that demand for cement in Nigeria increased by almost 16 per cent in the first quarter of 2013 and I am pleased to report that our volumes rose by substantially more than the market's growth rate in the same period. Such a strong start gives us confidence that 2013 will be a good year for Dangote Cement,” he said.

The company announced a profit after tax of N151.93 billion up from N121.4 billion of 2011 representing an increase of 25 per cent.
DCP is planning to list on the London Stock Exchange next year. Already the largest cement producer in sub-Saharan Africa,  the company  is more than doubling capacity this year to 21million metric tonnes, and wants to reach 43million tonnes in 2015.

Besides Nigeria, where it has three plants and 70 per cent market share, the company has contracts to construct factories in eight African countries, from Senegal to South Africa to Ethiopia.

AFRICA, Nigeria: Dangote Cement Posts N151.9bn Profit, to Pay N1.30 Dividend

Dangote Cement Posts N151.9bn Profit, to Pay N1.30 Dividend

Despite the much reported 'glut' in the cement industry in the last quarter of 2012, Dangote Cement Plc yesterday released its 2012 results, showing improvements  across its performance indicators.

Also for the first time since the company was listed on the Nigerian Stock Exchange (NSE), its published figures include financials from its Ghana operations.

The results released to the NSE showed that Dangote Cement recorded a turnover of N298.45 billion in 2012,  indicating a 23.63 per cent increase over N241.41 billion recorded in the corresponding period of 2011.

The company's profit before tax grew by 19.22 per cent to N135.65 billion from N113.78 billion in 2011. Profit after tax stood at N151.93 billion, up by  25  per cent  from  N121.4 billion  in  2011. Its administrative expenses declined by 56.7 per cent to N14.65 billion from N22.9 billion in 2011.

Analysis of the results showed that although Q4 2012 sales of N77.4 billion were up  15 per cent year-on-year(yoy),  PBT grew much faster, by 57per cent yoy due to a combination of 865bp expansion in gross margin and a marked reduction in net interest cost to N331million compared with N4.0 billion in the comparable period of 2012.  In addition,  a tax credit of N14.2 billion (vs. N8.7 billion Q4 2011),  led to an even stronger growth in PBT of 59 per cent yoy.

Based on the results, the directors have recommended a dividend of N3.00 per share, up  marginally from N1.20 paid the precious year. The dividend would be paid on June 3, 2013  after the company’s annual general meeting on May 23, 2013.

Commenting on the results, analysts at FBN Capital, said "compared with our estimates, although sales came in around seven per cent higher than what we were looking for, PBT missed our forecast by 14 per cent  largely due to operating expenses  of N14.3 billion coming in significantly higher than the N6.9 billion that we had modelled.”

AFRICA, Uganda: Hima insists on limestone licence

Uganda: Hima Insists On Limestone Licence

Hima Cement Limited insists it still owns the rights over the core limestone reserves in Kasese even after the High Court ruled that its current licence is invalid. The high court transferred the rights to the limestone deposits in Hima, Kasese district from Hima Cement limited to the East African Gold Sniffing Company in a March 26 ruling. The court ruled that Hima's 21-year-old licence expired at the end of 2011. There were also questions about Hima's business licence.

Hima appealed against the ruling. In a statement, Hima pointed out: "[Government] has collected taxes from the said entity and the entity has filed various statutory returns, none of which has ever been rejected by the said registry or any other relevant Government department and for this reason it is, therefore, totally surprising that anyone would assert that Hima Cement Limited doesn't exist."

The company has been in a dispute with East African Gold Sniffing Company for over a year after Hima is said to have failed to file a request for renewal for its licence. The Mining Act, Section 47(1), states: "The holder of a mining lease may apply to the Commissioner for the renewal of his or her lease in respect of all, or of part of the mining area not later than one year before the expiry of such lease."

East Africa Gold Sniffing thereafter applied for an exploration licence, which was granted on the basis that it was a newcomer to Uganda's mining sector. Both companies claim rightful ownership of the limestone deposits in Hima, Kasese, after Hima appealed against the High court ruling.