Africa’s chance to shine amid global turmoil

Published: 08 April, 2009

African companies with strong cash flows are in the enviable position of being able to analyse the opportunities that the crash in global asset prices represents. For example, the cement division of my own group of companies recently reviewed its strategic approach to expansion in Africa and across the world. The relationship between the cost of greenfield projects compared with the cost of acquiring existing assets has changed dramatically. Global cement manufacturers are heavily leveraged and will have to divest from non-essential assets. This offers us the chance to become a truly global multinational far quicker than previously would have been possible. We are also in a position to ensure that we pay the lowest price for new greenfield assets when we build them.

We have been working towards this aim for a number of years. Africa needs strong and credible businesses that can offer world-class services to local and international clients and customers. Africa can be projected on the world stage through its businesses and through successful business leaders. Africa needs the equivalent of a Tata of India or Rusal and Gazprom of Russia.

There is an obvious prerequisite for this to happen. African companies have to operate to international standards, supply products that meet international requirements and sell services at a level equivalent to those available elsewhere. The stage is set for this to happen and Africa has to take advantage of the opportunity that has arisen.

Alhaji Aliko Dangote is the chairman and founder of the Dangote Group of companies.

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