Dangote Breaking Trade Barriers To Grow Africa’s Economy

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Dangote Breaking Trade Barriers To Grow Africa’s Economy


The expansion of trade among African nations holds the key to faster growth and development to the benefit of all its citizens and to unlock this potential, countries will have to focus more on trade facilitation.

For this reason, African leaders have been urged to dismantle trade barriers stifling their individual countries, in a bid to ensure smooth flow of goods and services, with a corresponding impact on economic growth and development across the continent.

The call was made by the group chief commercial officer of Dangote Industries Limited, Mr. Rabiu Umar, during an interview aired on The Morning Show, a breakfast programme of the Arise News Channel, on the sidelines of the just-concluded Intra-African Trade Fair (IATF) held in Durban, South Africa.

Umar, who represented the Dangote Group, a platinum sponsor of the trade fair, also called for reforms at the various ports across Africa. He noted that, “Bringing down these barriers will mean that goods and services can move much more freely on the continent from one country to another.”

He advocated improved infrastructure across Africa to promote regional integration, as well as the ease of regulations and bureaucracy that prevented free flow of trade across the continent in order to realise the benefits of the African Continental Free Trade Area (AfCFTA) agreement.

Calling for an enforcement of the Rules of Origin enshrined in the agreement, Umar also canvassed for 80 per cent of components of manufactured products to be sourced from Africa to avoid dumping of goods from foreign countries. He noted that, there was a renewed interest in the Dangote group and Nigeria from other African countries at the fair.

Highlighting benefits of the AfCFTA and its impact on manufacturers like the Dangote Group, he said: “the trade barriers highlights a lot of issues around infrastructure, around diplomacy, around ports. For example, if you take the port situation, you may get your goods to the port and it takes such a long time. If I give the example of Nigeria to get them out of the country or into the country.

“I was on a panel here and someone from South Africa said it’s cheaper to move goods from Durban to China than from Durban to Cape Town. So, the challenges are not just related to a particular region, they’re all across Africa.”

Speaking on the renewed interest in Nigeria at the IATF meetings, with particular focus on his Dangote group, Rabiu said: “I think what has been impressive is the level of interest. From across the continent, many countries come in to find out what we do, trying to either sell us a solution, or try to buy something from us. I mean, we’ve had people from all over.”

Speaking about the scope of operations of the Dangote Group, he stated that, “we have presence in 10 countries, like I said, including South Africa. So, we had people come in, who are in South Africa to ask to do business with us. We have had people who want to know about our fertiliser business, for example, and all sorts and of course, the famous refinery, people are interested in finding out more and how they can collaborate and do business with us. So, it’s been a worthwhile trip so far.”

Responding to question on how to boost Intra-African trade, Rabiu proffered vital tips like fixing infrastructure, tariff reduction, ease of payments and settlements as the top priorities.

According to him, “it is a very difficult process. It is not just about the road transport or the quality of the roads you have. We do not have a rail system and of course, you know, road transportation is very expensive. The second part is the tariffs, the systems and the process, the bureaucracy.

“So, for us to get to where we need to get to, I think the key condition is to remove these barriers to trade, the biggest one being infrastructure, you need the infrastructure to move goods across the second part of it, you need to cut out the red tape, from a diplomatic perspective, from a customs perspective, or from even a payment settlement perspective. This is one of the things the Afreximbank has done with the settlement system among the African countries meaning that you are kind of dollarising the economies of these countries.”

Meanwhile, speaking at the 2021 International Lagos Trade Fair held recently, the group chief commercial officer, Dangote Industries Limited, Rabiu Umar, stated that the Group’s interest is beyond profit making but to supporting government in job creation, reducing poverty, and engaging in unprecedented philanthropy, adding that outside of government, the Dangote Group is the biggest employer of labour in Nigeria.

Rabiu said that farmers were excited over the new fertiliser product, which is already in the market, both locally and internationally.

On the Group’s participation at the Trade Fair, he said: “our participation at all major trade fairs across the country is a means of demonstrating our firm belief that Chambers of Commerce and Industry occupy a unique position in driving economic development through their activities.”

The Dangote Group is a Nigerian multinational industrial conglomerate, founded by Aliko Dangote. It is the largest conglomerate in West Africa and one of the largest on the African continent.

The company was founded in 1981 as a trading enterprise, importing sugar, cement, rice, fisheries and other consumer goods for distribution in the Nigeria market. The group moved into manufacturing in the 1990s, now owns and operates over 18 subsidiaries, Dangote Cement, the largest cement production company in Africa, with a market capitalization of almost N3.664 trillion as at March 31, 2020 on the Nigeria Exchange (NGX) Limited, Dangote Sugar is another major subsidiary of Dangote, Dangote Flour Mills, NASCON Allied Industries, Dangote Refinery, among others.

The Dangote Refinery when in operation will be Nigeria’s first private and Africa’s largest petroleum refinery, with the expectation of a daily production capacity of 650,000 barrels per day.


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