Aliko Dangote has officially ventured into Nigeria’s lucrative tomato paste business by teaming up with the Central Bank of Nigeria to establish a $25 million tomato-paste factory that could boost the income of tomato farmers around the country.


Aliko Dangote with the world’s richest man, Bill Gates at the Forbes 400 Summit on Philanthropy

The Central Bank of Nigeria reportedly teamed up with Dangote after an internal study showed that processing local tomatoes is cheaper than importing paste from China. The partnership is part of the country’s drive to cut down annual food imports in the country.

“We want to prove that with the right application of government policy we could get finance to the sector, improve productivity, create jobs and raise income,” said Central Bank of Nigeria Governor, Sanusi Lamido Sanusi.

Global business website, Bloomberg Businessweek interviewed a Nigerian tomato farmer, Shittu Ibrahim recently who ekes out a living for his two wives and 11 children by selling tomatoes he grows to passersby along a highway that runs through the Kadawa Valley near Kano. Ibrahim is hopeful about the news of Dangote’s foray into the tomato paste business saying:

“We are doing this only to feed, as you can see, I can’t afford the luxuries of life,” the stocky 56-year-old said. “There are better prospects in supplying Dangote because people will buy from them from all over the country. We hope that things will improve.

Before, the price of tomatoes would keep going down because all the farmers sell at the same time,” he said. With the coming of the Dangote factory, prices won’t go down that way any more. We can be sure of a stable income,” he continued

Nigeria currently pays more than $360 million annually to import more than 300,000 metric tons annually of tomato paste from companies such as China’s Baoding Sanyuan Food Packing Co.

Dangote’s tomato paste business would be run by Dangote owned Dansa Holdings and reportedly took up the mandate after the government failed to get importers including Olam, Conserveria Africana Ltd. and Chi Group Ltd. to form a venture. According to the CBN, farmers will receive a guaranteed price of about $700 per ton compared to an average of about $350 that they currently receive.

“It’s a win-win situation. We have a price we can compete with and the farmer has a price that makes the tomato a good value,” said Sani Dangote, , Aliko Dangote’s brother who serves as Vice President of Dangote Group. “It’s only agriculture that can take poverty away overnight because it doesn’t take long for the farmer to see the results and reap the rewards.”

The plant will commence operations in November 2013 and will produce more than 400,000 tons of tomato paste annually.
http://www.cp-africa.com/2013/07/05/aliko-dangote-tomato-business/

Great investment move by dangote
I hope other industralist will take que and also be given same leverage accorded to him. Nigeria has no need for imported foods.

This is good news. Now there will be no need to dry tomatoes.

Dangote keeps making it a trend to venture into businesses he knows he'll have monopoly over.
It makes me question his developmental strides at times.

welldone alika dangote, hope you will selybrate dis ashiefment with yuzedo at banana iceland manshun later.. Dammit, it's gud 2 be reach

Nice one my adopted father (we adopt fathers this days o)

9jadelta: welldone alika dangote, hope you will selybrate dis ashiefment with yuzedo at banana iceland later.. Dammit, it's gud 2 be reach

na by force?

Hezron Lorraine: Dangote keeps making it a trend to venture into businesses he knows he'll have monopoly over.
It makes me question his developmental strides at times.

Dont find something productive and wealth generating to do with your time oh, just continue with your questioning while he makes his millions.
@topic, i love this! This is great news. Time for Nigerians to know that the real change does not start with the government but with an individual. And that individual could also be you!

idnoble135:
Dont find something productive and wealth generating to do with your time oh, just continue with your questioning while he makes his millions.
@topic, i love this! This is great news. Time for Nigerians to know that the real change does not start with the government but with an individual. And that individual could also be you!

mr man,I see there's no point argung with you,since u and whoever liked you are learners.if you have a functional brain,u'd know well what I'm talking about.

Hezron Lorraine: Dangote keeps making it a trend to venture into businesses he knows he'll have monopoly over.
It makes me question his developmental strides at times.

and what are you doing about it to prevent monopoly

dont you know where to register your company and create competition

rozayx5:

and what are you doing about it to prevent monopoly

dont you know where to register your company and create competition

guy park well.If I would venture into any buzns.tomato paste would be the last thing.

This is the start of the Good things to come in Nigeria.
An opportunity of agric. stakeholders,financiers and farmers to.engage in tomato cultivation.Millions are made on a daily basis by growing tomato.Hope young graduates will take up this great opportunity.
If you.are interested in tomato cultivation,we lease land for cultivation and for more info and updates on step by step guide on tomato cultivation like us on www.facebook.com/lesgupnigeria

Lesgupnigeria: This is the start of the Good things to come in Nigeria.
An opportunity of agric. stakeholders,financiers and farmers to.engage in tomato cultivation.Millions are made on a daily basis by growing tomato.Hope young graduates will take up this great opportunity.
If you.are interested in tomato cultivation,we lease land for cultivation and for more info and updates on step by step guide on tomato cultivation like us on www.facebook.com/lesgupnigeria

i am intrested in tomatoe cultivation what is the cost and profit expectation per heacter thanks my e-mail is gbolahan.basheer@yahoo.com