CORRECTED-UPDATE 2-Dangote Cement to start exports from Congo, Nigerian exports decline

(Corrects headline and first paragraph of Feb. 26 story to
clarify that the decision to export from Congo was not related
to the decline in Nigerian exports)
By Chijioke Ohuocha
ABUJA, March 3 (Reuters) - Dangote Cement DANGCEM.LG said
on Wednesday it planned to start exports from its Congo Republic
plants to neighbouring states, while its Nigerian exports fell
41% in 2019 when Nigeria's government closed its borders.
Nigeria shut its land border in August to curb the smuggling
of rice to neighbouring states where it sells for more and an
illegal arms trade. The closure has also hurt other Nigerian
businesses, including cement exports, and stoked inflation.
Joseph Makoju, Dangote's outgoing chief executive, said the
border closure led exports to drop to 0.5 million tonnes in 2019
from 0.7 million tonnes in both 2018 and 2017. He said the
company had exported to West and Central Africa from Nigeria.
Makoju said total production volumes last year were flat at
14.1 million tonnes. Higher discounts, marketing and haulage
cost caused core profit to fall 9.1%, while margins slid 59.2%,
he said.
In February, Dangote Cement appointed ex-head of Lafarge
Africa WAPCO.LG Michel Puchercos as its new chief executive,
Makoju said.
"We undoubtedly faced several challenges last year," Makoju
told an analyst call. "We are very optimistic about the market
in 2020 and we expect to see some increase especially for
infrastructure project."
Dangote now plans to commence export of clinker, the main
raw material to make cement, from Congo in 2020 and promote its
Nigerian production more heavily to support growth.
The company said it planned to commence a share buy-back
programme this year once it obtained regulatory approval and
said it was actively considering a London listing with its
long-delayed London IPO still "under review".
Share price for Lagos-listed Dangote Cement, Nigeria's
biggest listed company, was quoted at 170 naira on Wednesday, a
41% drop from its peak of 286 naira two years ago.
Shares across Nigeria's stock market has tumbled in the last
two years. The oil-reliant economy has been stuck with low
growth since it emerged from a 2016 recession.