Nigeria's Dangote Sugar Targets 1 Million-Ton Output by 2020

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Dangote Sugar holds a 70% share of the Nigerian sugar market and is planning to increase its crop production to an annual 250,000 tons by 2017. By a process of acquiring sugar plantations across the country, it plans to then reach an annual output of 1 million tons by 2020.

Abdullahi Sule, chief executive officer of Dangote Sugar, told an investor's conference in Lagos that the company plans to almost double refining capacity to 2.75 million tons by 2017 by expanding its Lagos plant.

Dangote was increasing capacity to enter more African countries, beginning with Mali, Gambia, Burkina Faso and Togo this year and Liberia, Senegal and Mauritania in 2014, Sule said.

In 2013, the Nigerian government has removed duties on imported machinery and spare parts for sugar-processing companies. The government also has granted a five-year tax exemption for "sugarcane-to-sugar" investors and imposed duties of 60% on raw sugar and 80% on refined sugar.

Dangote claims to be the largest sugar refiner in Sub-Saharan Africa and the second-largest in the world.

For related information, see April 19, 2013, article - Africa's Richest Man to Take on Challenge of $8 Billion Nigerian Refinery.

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