The True Reason Why Dangote Slashed Cement Prices Revealed

Africa’s largest cement producer, Dangote Cement Plc has slashed local cement prices to N1,000 ($6) and N1,150 ($7), for different grades. The cement giant is keen to consolidate its position as not only Africa’s top cement maker, but the leading provider in the continent’s largest economy, Nigeria.

The current market price for a 50kg bag of the 32.5 grade and 42.5 grade retails for N1,700 ($10.3), 40 percent higher than Dangote’s latest offer.This is the lowest cement price offered consumers since 2005, and ups the ante in what is considered one of the continent’s more competitive markets.

Group Managing Director of Dangote Cement, Devakumar Edwin said the price cut was aimed at supporting the government’s ongoing effort to shrink housing deficit, which currently stands at an estimated 17 million.

“One of the ways of addressing the issue (huge infrastructure and housing deficit) is bringing the price of building materials down to much more affordable levels, especially cement, which is within our own control as part of our contribution to the transformation agenda of the President Goodluck Jonathan administration and the attainment of key milestones in the Millennium Development Goals,” Edwin said.

Since the backward integration policy for cement was implemented in 2002, local production capacity of the product has increased from less than 3 million metric tonnes per annum to about 38 million metric tonnes per annum, and nearly $20 billion has been injected into the Nigerian cement industry with Dangote – Africa’s richest man and owner of the Dangote Group – accounting for 60 percent of that investment.

With market capitalization surging beyond $22 billion, Dangote Cement is Nigeria’s most capitalized listed company and the first to hit $20 billion capitalization mark.

http://www.ventures-africa.com/2014/11/dangote-offers-nigerians-lowest-cement-price-since-2005/

Jonathan: Nigeria Will Join 20 Most Developed Countries by 2020

http://.com.ng/index.php/political-news/item/952-jonathan-nigeria-will-join-20-most-developed-countries-by-2020

Jonathan wasn't joking o

Welcome development. Soon the price will fall to 500 per bag.

Na to go start foundation o

In summary, it's a business strategy focused on eliminating competition and maximizing profits. But this time, it favours the consumers.

Good development !!
Fresh Air things.

Frankenstein:
In summary, it's a business strategy focused on eliminating competition and maximizing profits. But this time, it favours the consumers.

True talk

And someone will come here and say GEJ is not working.

If the big shots like dangote and innoson can see a bright futur in GEJ, then who ever say GEJ will not continiue with his good work,
#shouldgoanddie

GEJ till cement comes down to 250 per bag
#freshair

What about those that already have in stock ?

Frankenstein:
In summary, it's a business strategy focused on eliminating competition and maximizing profits. But this time, it favours the consumers.

If in Dangote's quest to 'eliminate competition' me,I and myself can now afford to own house ; ah! it is well.


From 1.7k down to 1k....

Is high time one start developing that two plots behind honourable Pascal compound.

Ah ! Thank you Dangote o.

Then after febuary 15 election. It shoots back to it normal price.

lookmangiw:
Then after febuary 15 election. It shoots back to it normal price.

I doubt it, put it is a possibility

I can see the fresh air.

You mean I can now commence building my estate??

na to buy and stock incase

so the price is no longer determined by supply and demand?
mumu full for we side.

Hope I benefit from this

99100:


If in Dangote's quest to eliminate competition me,I and myself can now afford to own house ; ah! it is well.


From 1.7k down to 1k....

Is high time one start developing that two plots behind honourable Pascal compound.

Ah ! Thank you Dangote o.

Then you do not fully comprehend the strategy. After the competition may have been wiped because of inability to compete, then the price will go back up. It may even go past the now N1700.

Frankenstein:
In summary, it's a business strategy focused on eliminating competition and maximizing profits. But this time, it favours the consumers.

True talk Bro, I just pray they sustain it for a long time.

God bless dangote for this act.
God bless GEJ.
God bless all the investors that have key into the transformation agenda.
and may God bless all sincere nigerians

major466:
Welcome development. Soon the price will fall to 500 per bag.

really? That will be a dream come true.

gud one.....African's Richest

POWERFUL decision

And the layman will ask '' why the increase all these while?''

So one man determines our destiny

brightmexy:
Na to go start foundation o

anybody wey get money for foundation go don start since

hehehehehe Make I go tell my momcy dat our 100 by 100 wey na only foundation she try do since 2012 go finally grow. ahhh that Mr Funsho go soon stop dey chop our money for rent

Thank u dangote indeed. After stealing a whole cake, he now gives my ppl d crumbs to buy

acenazt:
hehehehehe Make I go tell my momcy dat our 100 by 100 wey na only foundation she try do since 2012 go finally grow. ahhh that Mr Funsho go soon stop dey chop our money for rent

Very funny

I dey go buy one trailer load of cement kip for house