Nigeria: Dangote Cement says that it will slow down its growth strategy in response to ‘challenging’ markets in Nigeria and the rest of Africa. Chief executive Onne van der Weijde made the comment in the Nigerian cement producer’s financial results for the first half of 2016. The group now intends to focus on a five-year building programme to better balance funding and investment.

Dangote Cement’s total revenue rose by 20.6% year-on-year to US$926m from US$768m in the same period of 2015. However, its earnings before interest, taxes, depreciation, and amortisation (EBITDA), a measure of operating profitability, fell by 10.2% to US$420m from US$468m.

“We have achieved a commendable result, given the very challenging situation in our main market and general economic weakening across Africa,” said Onne van der Weijde. “The devaluation of the Naira will obviously have an impact on costs and our priority will be to protect margins.” He added that the group was ‘optimistic’ that Nigerian infrastructure investment would soon increase demand for cement.

Dangote saw its sales volumes of cement rise by 59.5% to 13Mt from 8.1Mt. The bulk of sales, 8.77Mt, were in Nigeria, with fast increases in South and East Africa as operations in Tanzania started.