Sephaku, Dangote Cement’s subsidiary gets N34.85billion lifeline in S/Africa

Sephaku Cement, the South African subsidiary of Dangote Cement, has secured a 10-year loan of N34.85billion from two major South African banks–Standard Bank and Ned Bank.

A statement by the Dangote Group in Lagos on Sunday said the Dangote subsidiary was advised on the transaction by Sasfin Capital of South Africa.


According to the statement, the financing agreement, signed last week in Johannesburg, marks a critical juncture for the company in its market preparations, which signals a strong vote of confidence from the local market.

“The closure of the debt and commencement of the draw down of its loans are major milestones for the Dangote Cement subsidiary and associate of Johannesburg Stock Exchange-listed Sephaku Holdings.”

“The agreement effectively closes the gap in terms of the required capital for Sephaku Cement to be fully prepared for market entry and a significant competitor in wholesale and retail cement trade,” the statement explained.

Sephaku Cement was established in 2006 and was the first clinker producer in South Africa, operating since 1934.

It is an associate company of JSE-listed Sephaku Holdings Limited and a 64 per cent-owned subsidiary of Dangote Cement Plc.

Dangote has invested more than N19.66billion in the venture, representing the largest investment in a South African enterprise by an African company.

The Sephaku Cement’s Chief Executive Officer, Pieter Fouri was quoted as saying that the significance of the deal went beyond cement.

“It indicates a strong new commitment to industrial development in South Africa” he said.