Africa’s richest man Aliko Dangote to earn $704 million in dividends from cement company

Africa’s richest man Aliko Dangote is set to earn a total of N293 billion ($704.1 million) in final dividends from his stake in Dangote Cement Plc.

This represents the bulk of the final dividend distribution of N340.81 billion ($819.2 million) approved by the company’s board of directors at the conclusion of the group’s 2021 fiscal year.

Dangote Cement is Africa’s largest cement producer, with a total production capacity of 51.55 million tonnes of cement per year across 10 countries.

Under the leadership of Dangote, who holds an 86-percent ownership interest in the cement company, the leading cement manufacturer has contributed to the elimination of Nigeria’s reliance on imported cement, changing the country into a net exporter of cement goods.

At the end of 2021, the cement behemoth posted a 33-percent increase in profit, from N276.06 billion ($663.5 million) in 2020 to N364.4 billion ($875.9 million) by the end of 2021, attributable to impressive top-line growth and the management’s sound cost-cutting strategies.

The robust growth in earnings was triggered by a 33.8-percent increase in revenue from N1.03 trillion ($2.47 billion) to N1.38 trillion ($3.31 billion), driven by an increase in sales from 25.72 million tonnes to 29.27 million tonnes and pricing gains from the surge in the price of cement.

The company’s strong financial performance prompted the board to suggest a final dividend of N20 ($0.0481) per share, payable to shareholders on June 15.

According to the board’s decision, Dangote, who has an 86-percent controlling stake in the cement behemoth, will receive dividends of N293 billion ($704.1 million) from his investment in the leading cement manufacturer.

This represents a 23.5-percent increase over the $570 million that he received as dividends at the end of 2020.