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Dangote Is Selling Cement For 1,150 Naira In Zambia - Business (4) - Nairaland

Nairaland Forum / Nairaland / General / Business / Dangote Is Selling Cement For 1,150 Naira In Zambia (56882 Views)

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Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Staphylococcus: 7:28pm On Apr 06
Aconomist:
Dangote is selling cement for 55 Kwatcha (1150 naira) in Zambia. But in Nigeria, the same cement is going for 3,000 to 5,000 naira. Dangote is the biggest problem in Nigeria. I have never seen such a wicked excuse for a human being in my live. EndSARS is over. It's time to start END DANGOTE.

https://zambiareports.com/2021/03/31/78130/


You are not brilliant OP

Chevron and Shell selling PMS over $2.50/Liter in the USA, Why are they selling cheaper in Nigeria

You see that comparison is baseless

2 Likes 1 Share

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Aconomist: 7:28pm On Apr 06
Sunmoluvic:

That's cruel, but you should take a consideration into some things such as the availability of natural resources (limestone) used in making cements. But still, the price too much
Nigeria is covered in limestone, most of Dangote's mines have a 250 year lifespan. There is no scarcity of the raw material.

7 Likes

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by ALLNIGERIANSMAD(m): 7:28pm On Apr 06
ayterajah:
Am not supporting dangote but my point of view is that what's the economy state of Zambia compare to Nigeria and don't forget that dangote it's not alone ... he have many govt officials under him
this is exactly the problem of Nigeria, when we say something is bad, some like this guy will come and defend evil where as he/she is also victim of the situation,

4 Likes

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Incognito403: 7:28pm On Apr 06
CSTRR:

This is a stupid argument.

Dangote is the market leader. His prices determine the prices of other Brand and he knows it.
That is why he is not bothered.

If dangote sells cheap, others will sell cheap.

Stop making stupid arguments.



Your thinking has been obfuscated by hate and bitterness.

You're not making any sense. It's easy to see.
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by isaiahethan: 7:28pm On Apr 06
[quote author=jaszplus12 post=100392512]
A particular tribe are not happy because it's not their person that's enjoying the monopoly...if it were... hmmnmm they would have said how no one else can be smarter than them!! Would not have referred to it as wickedness but as business acumen!!



Ode

1 Like

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Coolbadguy: 7:28pm On Apr 06
I hear say buhari driver die inside Aso rock, abeg na joke abi na wetin i dey hear so..
Na God go punish all the people, being business men or billionaire that is control this nations wealth or politician.
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by john633(m): 7:29pm On Apr 06
Dangote is a clown
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by angelfallz(m): 7:29pm On Apr 06
Not true, "Local production is useful but it should not come at all costs. So much was made of the expected outcomes for Nigeria once cement production was localised, but have the premises for those promises been proven right? Available data shows that Nigerian cement firms have the world’s highest profit margins, with Dangote Cement having margins of 45 per cent, when margins of major cement producers in other countries in India, Germany, Mexico, range from 1 to 14 per cent, with one other outlier being China’s Anhui Conch Cement that has a 21 per cent profit margin.

Margins this high in what is arguably the least developed continent on the planet do not make a lot of sense. Having profits from lower margins on higher volumes would give more of a mutually beneficial situation.
"

You can read the full article here: https://www.premiumtimesng.com/opinion/450128-of-dangote-and-near-absolute-monopolies-by-cheta-nwanze.html

jaszplus12:

I saw a comment on facebook where someone was insulting Dangote for selling cement in Ghana...he quoted the price as equivalent to #800. Of course out of ignorance! Cement is 38-39 Ghana cedis equivalent to about #2,500...in fact Dangote cement is 39 cedis....so I wonder what people want...the condition you mentioned are quite different in Ghana because almost everything is available...

4 Likes 1 Share

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Aconomist: 7:29pm On Apr 06
Staphylococcus:



You are not brilliant OP

Chevron and Shell selling PMS over $2.50/Liter in the USA, Why are they selling cheaper in Nigeria

You see that comparison is baseless

Dangote is selling cement at double its cost of production. Get that trough your mushy Nigerian brain.

11 Likes 2 Shares

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Asour: 7:30pm On Apr 06
Aconomist:
When people ask me why I don't invest in Nigeria, remember this thread and responses like this. Nigerians are addicted to stagnation and justify their own demise -- only a fool would put his hard earned capital into a nation of monkeys like this.

Cement prices around the world range from $3 to $6 while Dangote is selling for the equivalent of $11 for a profit margin of 60% in Nigeria compared to an industry average profit margin of 5% to 12%. He is able to charge these high prices because of low competition -- he kicked out competitors by hoarding limestone resources and convincing the federal government to ban imports.

According to Rabiu of BUA Group, Nigeria's real cost of cement production is the lowest in the world. The high prices are because of price gouging and monopolistic behavior from Dangote.


There are least 3/4 major cement producers in Nigeria. If Dangote's cost is exorbitant & BUA says Nigeria is the least cost producer of cement, Why doesn't BUA & Lafarge sell at half the price of Dangote's currently?

3 Likes 1 Share

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by godofuck231: 7:30pm On Apr 06
When the authorities in power have compromised themselves

1 Like

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by angelfallz(m): 7:30pm On Apr 06
They have their own share na!

Masonkaycares:
I have solemnly sworn not to have a business in Nigeria. What kinda wickedness is this? If he sold this mutherfvcken cement at the right price, house for full everywhere but no he chooses to monopolize it(supported by the zombies governing this shitthoole) and everyone suffers. F^©k Dangote. It will never be well with your 4th generation.
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by godofuck231: 7:30pm On Apr 06
When the authorities in power have compromised themselves as usual
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by tayooluwole: 7:31pm On Apr 06
Aconomist:
When people ask me why I don't invest in Nigeria, remember this thread and responses like this. Nigerians are addicted to stagnation and justify their own demise -- only a fool would put his hard earned capital into a nation of monkeys like this.

Cement prices around the world range from $3 to $6 while Dangote is selling for the equivalent of $11 for a profit margin of 60% in Nigeria compared to an industry average profit margin of 5% to 12%. He is able to charge these high prices because of low competition -- he kicked out competitors by hoarding limestone resources and convincing the federal government to ban imports.

According to Rabiu of BUA Group, Nigeria's real cost of cement production is the lowest in the world. The high prices are because of price gouging and monopolistic behavior from Dangote.

At first sight, it’s pathetic to realize this huge price differences compare to other countries but then, before standing firm to a conclusion I think we need to asses many factors side by side. The tax system in Nigeria, the availability of raw materials and the price compare to other countries. Do we yet know how cheap it is to get these materials in other countries, how huge or cheap is the reward for labour services over there. I think these are important parameters in drawing our inferences
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Aconomist: 7:31pm On Apr 06
Asour:



There are least 3/4 major cement producers in Nigeria. If Dangote's cost is exorbitant & BUA says Nigeria is the least cost producer of cement, Why doesn't BUA & Lafarge sell at half the price of Dangote currently?
They have no incentive to do that. According to Rabiu, the problem in the industry is scarcity. They can't produce enough to meet demand. The only solution is to allow more companies to enter the industry and compete OR allow imports.

4 Likes 1 Share

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by AlexB300: 7:31pm On Apr 06
Csami:


You're a zomb!e. Who in their right mind would justify this nonsense? What has tribe got to do with this? Are his people getting the cement for free?
Let's call wickedness what it is and not tag tribe to it.
no mind em. Old men displaying their ineptitude
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by angelfallz(m): 7:31pm On Apr 06
Not true. https://www.premiumtimesng.com/opinion/450128-of-dangote-and-near-absolute-monopolies-by-cheta-nwanze.html
PlsBanMe:
Dangote is not donating to politicians there or to the two major political parties in that country as he does in Nigeria. Someone has to pay after all.

His business there probably run on public electricity supply, thereby reducing his costs unlike Nigeria where he probably has to bribe electricity distribution companies and has to have standby generator sets.

Less cost of production will lead automatically to lower prices of goods.

1 Like

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by prekumohtim(m): 7:31pm On Apr 06
Aconomist:
Dangote is selling cement for 55 Kwatcha (1150 naira) in Zambia. But in Nigeria, the same cement is going for 3,000 to 5,000 naira. Dangote is the biggest problem in Nigeria. I have never seen such a wicked excuse for a human being in my live. EndSARS is over. It's time to start END DANGOTE.

https://zambiareports.com/2021/03/31/78130/

Also do well to check Zambia taxes . Are their taxes the same thing with Nigeria?
Nigeria gov't tax almost everything, even the recharge card you use in making calls.
Vat was 5% but has been increased to 7.5% and withholding tax is 5%
COT 30%, education tax 2%. Meanwhile, there are other state and local government levies coupled with host community social responsibility.
When cost of production is high , companies don't offer their goods at cheap price.

Check every product in the Nigeria market today, they are expensive mainly because of taxes. Even your withdrawals from banks are now being taxed. And failed transactions are not exempted.
The problem is from your government, not companies
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by kenex4ever(m): 7:31pm On Apr 06
jaszplus12:

A particular tribe are not happy because it's not their person that's enjoying the monopoly...if it were... hmmnmm they would have said how no one else can be smarter than them!! Would not have referred to it as wickedness but as business acumen!!
It's obvious you cannot afford 20bags of cement, if not you would understand that it's not about tribe but simply making things hard for every Nigerian.

Even rent will increase

4 Likes

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Staphylococcus: 7:31pm On Apr 06
Aconomist:


Dangote is selling cement at double its cost of production. Get that trough your mushy Nigerian brain.

And Ibeto, Lafarge and Ashaka are selling far cheaper shey!

You are not brilliant.

Why cant competitors crash price? Cos its not profitable

4 Likes

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Gentlerespect76: 7:32pm On Apr 06
ayterajah:
Am not supporting dangote but my point of view is that what's the economy state of Zambia compare to Nigeria and don't forget that dangote it's not alone ... he have many govt officials under him

So what are you actually trying to say? Huh?

2 Likes

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Machinegun91(m): 7:32pm On Apr 06
Nigerian people are extremely wicked

1 Like

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by angelfallz(m): 7:32pm On Apr 06
I love it when people argue with facts.

Aconomist:
Dangote has a EBITDA (this calculates profits before tax, interest, depreciation, etc.) margin of 60%,. He says it in his annual report. If he has an EBITDA margin of 60% and he is selling for 3,000 naira, his cost of production is only 1200 naira. Also, notice how much lower the EBITDA margin is in "Pan Africa" which is his operations outside Nigeria.

This just just open price gouging. And you monkeys are too dumb to see it.

Link: https://www.dangotecement.com/wp-content/uploads/reports/2020/FY2020/DangoteCement_FY2020_ResultsStatement.pdf go to page 4.

7 Likes

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Aconomist: 7:32pm On Apr 06
tayooluwole:


At first sight, it’s pathetic to realize this huge price differences compare to other countries but then, before standing firm to a conclusion I think we need to asses many factors side by side. The tax system in Nigeria, the availability of raw materials and the price compare to other countries. Do we yet know how cheap it is to get these materials in other countries, how huge or cheap is the reward for labour services over there. I think these are important parameters in drawing our inferences

All of this information is in Dangote's financial report. He sells cement at double his cost of production in Nigeria (60% EBITDA margin) compared to a 22% EBITDA margin in other African countries.

3 Likes 1 Share

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by akilo1: 7:32pm On Apr 06
We are stipl looking at his ass matter
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by UnabashedIPOB: 7:33pm On Apr 06
The problem is because you're in ONE NIGERIA. How on earth can one man be in charge of such essential commodities in a country with a population north of 100 million? He claims to be a billionaire. Anyone even without any business acumen that is allowed to monopolize such essential commodities would be a billionaire as well. His billionaire status needs to be qualified. He did not get where he is due to his hard work but due to his pedigree...being a FULANI.

6 Likes

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Forumobserver12(m): 7:33pm On Apr 06
He also sold the same product almost two times cheaper in Ghana few years ago, the annoying part of it is that the same product he was produced in Nigeria and exported to Ghana..

All these things are happening because the people we have in authority are in bed with him...

7 Likes

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Trybes(m): 7:33pm On Apr 06
Terrible! I hope this vital info crashes the price of cement from the current N3900 to N1500
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by angelfallz(m): 7:34pm On Apr 06
Dangote crippled Ibeto using OBJ. https://nairametrics.com/2018/08/25/cement-wars-the-battle-for-cement-dominance-between-ibeto-vs-dangote/

Permesso:


He's looking for quick money to invest and finish his Gigantic refinery in Lagos. He's as greedy as Nnewi man. Ibeto should come out and do his justice, but his no where to be found. Can you imagine 1500 in Zambia while Nigeria where it's produced and soursed is unattainable in price.

2 Likes

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Jonegonu: 7:34pm On Apr 06
expliciit:
The dangote guy is a criminal, I have known this for a long time base on report and experts opinion that cement should not be more than #1000
mr baskets mouth when dangote was investing his money in business people from your village are buying G-wagon jeep
Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by Lafrresh: 7:34pm On Apr 06
Whatever you want say is your problem but if you are a businessman your main goal is to increase your profit �. It's now left for the government and consumers to allow you sell at that price.
If people don't buy no one would tell him before he reduces his price na , it's because he has a high number of consumers and the government didn't set a maximum price for him.

Car sellers do the same , most of the cars they buy are salvaged. They repair it and sell it at astronomical prices .
Ok lemme ask you this question , if you were Dangote would you reduce your price or increase it to make profit
You'll probably say increase so I don't see why you are insulting him

2 Likes

Re: Dangote Is Selling Cement For 1,150 Naira In Zambia by DannyG8(m): 7:34pm On Apr 06
ayterajah:
Am not supporting dangote but my point of view is that what's the economy state of Zambia compare to Nigeria and don't forget that dangote it's not alone ... he have many govt officials under him
you are mad and stupid is Nigeria economy good , stop hypocrisy it won't help us you mean Nigeria is more richer than Zambia haven't you heard that Nigeria has the highest unemployment rate in the world stop being foolish my advice

2 Likes

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