Dangote-owned sugar firm plans $1bn expansion

Dangote Sugar Refinery Plc, owned by Africa’s richest man Aliko Dangote, plans to spend $1 billion on growth after Nigeria’s central financial institution made his agency one of many three sole importers of the sweetener into Africa’s largest economic system.

The corporate has put greater than 100,000 hectares of land beneath cultivation to develop sugarcane for native sourcing of inputs, Chief Government Officer Ravindra Singhvi stated at an investor convention name in Lagos on Thursday.

Moneyweb Insider

Subscribe for full entry to all our share and unit belief information instruments, our award-winning articles, and assist high quality journalism within the course of.

The plantations in Nigeria’s northern states of Adamawa and Nasarawa will likely be prepared by 2023 whereas work to virtually double the capability of a sugar manufacturing unit in Adamawa to six 000 tons cane-crushing-per-day is ongoing, Singhvi stated.

The agency plans to lift capability to 1.5 million to 2 million tons of refined sugar yearly by 2024, from 403 846 tons as of June. The sugarcane plantations will allow Dangote Sugar to supply inputs regionally, enhance manufacturing and enhance gross sales because the West African nation goals to finish importation of the sweetener to preserve international change.

The Central Financial institution of Nigeria stated in April it is going to minimize foreign-exchange provide for wheat and sugar imports however final month allowed solely Dangote Sugar and two different companies to import the product, citing progress they’ve made in native sourcing of uncooked supplies.

The Nigerian authorities requires Dangote Sugar to provide 550 000 tons of refined sugar each year from regionally grown sugarcane by 2024, Singhvi stated. “We stay assured of the large advantages backward integration would ship.”

© 2021 Bloomberg

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *