In a year marked by hyperinflation, currency devaluation, and geopolitical instability across several African markets, Ethiopia stood out as Dangote Cement Plc’s most operationally profitable Pan-African operation in 2024 at least on an inflation-adjusted basis.
Ethiopia reported an inflation-adjusted revenue of N252.56 billion, pre-tax profit of N122.5 billion and post-tax profit of N91.8 billion, according to Dangote Cement’s 2024 full-year report.
Ethiopia’s standout performance is particularly noteworthy given its classification as a hyperinflationary economy, triggering the application of IAS 29 in Dangote Cement’s 2024 full-year earnings.
Under this accounting standard, financial statements are adjusted for inflation to reflect the true economic value of transactions.
While Ethiopia delivered robust operating results, the application of IAS 29 led to a N57.5 billion non-cash accounting loss, impacting the Group’s consolidated net income.
Inflation averaged 23% in 2024, according to the Ethiopian National Statistics Office, following a sharp devaluation of the Birr in late July, while the central bank held its benchmark interest rate steady at 15%.
The Ethiopian economy expanded by 6.1% in 2024, with growth projected to reach 6.5% in 2025, supported by rising economic activity and a resilient cement market.
The 2.5Mta plant in Mugher reached full production capacity, although sales volumes declined by 4.7% year-on-year to 2.3 million tonnes, mainly due to renewed security concerns and limited access to imported coal from South Africa.
In response, the company intensified its use of alternative fuels and optimized its cement-to-clinker ratio to maintain operational efficiency.
Group-level comparison and regional breakdown
While Ethiopia delivered the highest pre- and post-tax profits among Dangote Cement’s Pan-African operations, performance across other key markets such as Zambia, Tanzania, Senegal, Congo, Cameroon, South Africa, and Sierra Leone was mixed, with some countries posting significant losses.
For example, in 2024, Dangote Cement Ghana reported an inflation-adjusted pre-tax loss of N10.66 billion, while Takoradi Cement Production Limited also posted an inflation-adjusted loss of N769 million.
Aside from this, the Pan-African cement volumes declined marginally by 1.1% to 11.1Mt, down from 11.3Mt in 2023, mainly due to adverse weather in Tanzania and political instability in Senegal and South Africa.
Despite these headwinds, the Pan-African segment recorded robust topline growth, generating N1.48 trillion in revenue, a 60% year-on-year increase and contributing N195.6 billion in operating profit.
However, bottom-line performance was heavily affected by the application of IAS 29: Financial Reporting in Hyperinflationary Economies in countries such as Ethiopia, Ghana, and Sierra Leone.
Under IAS 29, financial statements of entities operating in hyperinflationary economies must be restated to reflect current purchasing power, resulting in significant non-cash adjustments to items like revenue, expenses, and monetary balances.
These restatements, combined with elevated foreign exchange losses and rising input costs, significantly eroded net profitability.
As a result, despite strong operating performance, the Pan-African operations recorded a post-tax loss of N24.4 billion in FY 2024, which further deepened to N110 billion in Q1 2025 compared to N36 billion in Q1 2024.
Tailwinds and operational positives across regions
Nevertheless, beneath the headline post-tax losses, Dangote Cement’s Pan-African footprint continued to show underlying strength.
Several operational gains and structural improvements across key markets point to a potential recovery path and long-term growth drivers.
- In Cameroon, sales volume rose 2.4% to 1.4Mt, supported by developmental projects expected to stimulate near-term cement demand.
- In the Republic of Congo, sales climbed 8.7% to 878Kt (including exports), driven by robust export demand to the Democratic Republic of Congo (DRC) and clinker exports to Cameroon.
- In Senegal, while sales volume fell 4.7% to 2.3Mt, infrastructure projects like the Diam Niadio–Mbour–Kaolack road are expected to support cement demand.
- In Ethiopia, further efficiency gains are being pursued through alternative fuels and clinker ratio optimization to counter inflationary pressures.
- In South Africa, Dangote Cement is ramping up alternative fuel use to mitigate rising energy costs and persistent load shedding.
These highlight the Group’s strategic adaptability and continued focus on unlocking regional growth potential.
“Our vision is for Africa to become self-sufficient in cement and clinker production. We achieved this in our home country, Nigeria, which transitioned from being one of the largest importers to becoming self-sufficient and now an exporter of cement and clinker,” the company stated.