Dangote Cement Plc, Africa’s biggest cement maker, is doubling down on its expansion plans across the continent, including South Africa, Senegal, and Ethiopia, after the company recorded its highest profit on record.
The expansion move follows rising demand for cement, the primary material used in construction. For a region largely inhabited by young people, that need becomes inexhaustible, positioning Dangote Cement for more continued growth.
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“We are confident in our growth trajectory and our ability to capitalise on Africa’s robust cement demand fundamentals,” Arvind Pathak, chief executive officer of the company, said in an earnings release filed with the Nigerian Exchange.
“We will continue commissioning new capacity, including the transformational 6 metric tonne per annum (Mta) Itori plant, while advancing expansion projects in Ethiopia, Cameroon, South Africa, Zambia, and Senegal.”
Net profit of the cement manufacturer owned by Africa’s richest man, Aliko Dangote, surged to N1 trillion in 2025, doubling the previous year while hitting a historic high. This is as revenue rose 20.3 percent to N4.3 trillion, supported by strong domestic sales.
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This expansion in profitability, Pathak said, was achieved despite a modest 0.9 percent decline in volumes to 27.5 million tonnes, reflecting the company’s deliberate focus on margin discipline, cost efficiency, and value creation.
One of the key strategies that helped cut costs and feed into profitability was the company’s energy mix for the reviewed period.
In 2025, Dangote Cement transitioned to Compressed Natural Gas (CNG) technology, acquiring over 3,000 full CNG trucks, the largest fleet deployment in Africa’s cement industry.
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These vehicles, according to the CEO, delivered over 60 percent fuel cost savings compared to diesel, embedding permanent structural advantages into the company’s cost base.
“We are committed to converting our entire logistics fleet to CNG by 2027, a transformation that will further strengthen margins, enhance operational flexibility, and significantly reduce our carbon footprint,” Pathak said.
The improved profitability led to a 50 percent surge in the company’s proposed dividend payout. Dangote Cement plans to pay a final dividend of N45 per share, which is subject to appropriate withholding tax and approval.
