7 Reasons You Should Invest In Dangote Cement Now
Aliko Dangote is at it again! Profit, profit and more profit.
From the kick-off of a truck assembling plant in Lagos, the company has recently moved into road construction.
Dangote through AG Dangote, a joint venture with a German firm has constructed a 500km concrete road in Benin City, Edo state, reports Nairametrics.
Before this, Dangote cement had constructed a few roads, mostly around its areas of operation and for Corporate Social Responsibility (CSR) projects such as the Obajana-Kabba road in Kogi State.Dangote’s diversification into road construction could benefit investors in several ways. Based on this and more, here's why we think this is the best time to invest in Dangote Cement:
1. The move into construction serves as a means of forward integration, as Dangote Cement, a member of the Dangote Group, produces various types of cement.
2. Going into construction will increase the potential markets for its cement. If road construction with cement is fully embraced, it could lead to a spike in both the price and demand for cement.
3. The move into construction is an additional source of income, especially at this period when real estate activities are its lowest.
4. Construction of roads with cement is still relatively strange in Nigeria, so the firm has the opportunity of cornering a market still in its infancy. Plus, Aliko Dangote has always been particular about being among the top two players in any market he operates.5. Being the largest producer of cement in the country, AG Dangote will be getting its primary raw material at the cheapest price possible.6. The company can thus afford to charge a lower quote than competitors who would have to place orders with a cement manufacturer. Since road construction and rehabilitation is cheaper with cement than asphalt, governments in the country may decide to switch to using cement.7. The move into construction may also be part of the pan African goals of Aliko Dangote, as Dangote cement has plants in several countries in Africa. The AG group also operates in other African countries