LONDON, United Kingdom, October 9, 2017 - Nigerian Aliko
Dangote, Africa's most successful business leader, in the presence of Nigerian
vice-president Professor Yemi Osingajo, Congolese presidential hopeful Moise
Katumbi, and about 300 business leaders, shared secrets of backward integration
at the Financial Times' 4th annual Africa Summit in Claridges, London.
Mastering detailed production statistics and
highly-compelling demographics on promising sectors of the African economy,
Dangote outlined the key to his success: self-sufficiency and backward
integration, a manufacturing strategy that extracts value from entire
processes. "We are not going to import anything any longer," he said.
"In Nigeria we are learning how to produce the entire value chain."
Once a heavy importer of fertilizer, Nigeria is now gearing up to produce 3M
tonnes of locally manufactured fertilizer, transforming the nation into one of
the largest fertilizer exporters in Africa.
In 2007 Nigeria was the second largest importer of cement
after the US, Dangote reminded the audience of business elites. "Today, we
have not only satisfied domestic needs; we have become a leading exporter of
6-7M tonnes of cement," he added.
Diversifying into agriculture, Dangote has eyes on the dairy
industry motivated by the fact that "98% of all milk consumed in Nigeria
is imported." Same for rice.
Dangote Group has invested heavily in rice production by investing in
local farmers and then offering to buy back the 1M tonnes at open market prices
that they are growing. "Soon we will be able to feed not only Nigeria but
the entire 320M large West African market."
Dangote's business accumen was on rare exhibition as FT
editor Lionel Barber himself seemed impressed with the business mogul's quick
familiarity with the nuts and bolts of his businesses. "Are we going to
continue to import everything?" Dangote asked. "Freight rates are now
cheap but they will go up soon. A population of over 200M cannot continue to
import basic needs on a daily basis," he answered himself.
By 2100 Dangote stated Africa will represent 49% of the
world's population, up from 30% today. "If you don't think big we won't
grow at all," he said. "In Africa you have to play long-term." Aside
from Nigeria, which African nations do you think are good growth opportunities?
Barber asked Dangote. "Aside from Nigeria?" the business leader
repeated and smiled. "I'd have to pick Nigeria. I am a big fan of Nigeria.
We are only using 8% of our land."
From APO Group' Special Envoy to the FT Africa Summit, David
Applefield, Claridges, London, October 9, 2017
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