Africa’s richest man, Aliko Dangote, is looking to take greater control of his industrial group’s supply chain by acquiring ships to transport products from Nigeria to markets across West and Central Africa.
The move comes after Dangote Industries reportedly struggled to secure a vessel for a relatively small shipment of just 1,000 metric tonnes of cement from Nigeria to Ghana.
The shipping challenge highlights a broader problem facing regional trade in Africa, where manufacturers can produce goods at scale but still face major logistical obstacles when trying to move them across borders.
Dangote wants its own ships
Sada Ladan-Baki, head of international trade export at Dangote Cement, disclosed the company’s plans at a seminar focused on non-oil exports.
According to BusinessDay, Ladan-Baki said the company was moving towards acquiring its own vessels to support its regional operations.
The strategy would give Dangote greater control over the transportation of its products and reduce its dependence on third-party shipping companies.
The need became particularly apparent when the company attempted to move a 1,000-tonne cement shipment from Nigeria to Ghana but was unable to secure a suitable vessel.
For a company of Dangote’s scale, the inability to find shipping capacity for such a shipment demonstrates how infrastructure and logistics constraints can interfere with regional expansion.
Road transport is becoming expensive
When shipping is unavailable, Dangote can move its products overland.
But that option comes with additional costs.
Cement transported from Nigeria towards Ghana can pass through countries including Benin and Togo, exposing the shipment to taxes and other border-related costs.
Those expenses ultimately increase the price of the product and can make Nigerian exports less competitive in neighbouring markets.
For Dangote, owning ships could therefore provide more than convenience.
It could become an important part of the group’s strategy to reduce logistics costs and make its products more competitive across West Africa.
Controlling more of the supply chain
The proposed acquisition of vessels fits into a broader strategy of vertical integration.
Dangote has already built significant production capacity across sectors including cement, refining and other industries.
Taking greater control of transportation would allow the group to manage another critical stage between production and the final customer.
Instead of relying entirely on external shipping companies or costly road routes, Dangote could potentially move products according to its own schedules and regional distribution requirements.
That could become particularly valuable as the company expands its presence across African markets.
Nigeria’s shipping capacity remains a challenge
The development also comes as Nigeria attempts to rebuild its domestic shipping capacity after years of relying heavily on foreign vessels.
A stronger domestic maritime industry could help Nigerian manufacturers move goods more efficiently within the region and internationally.
For exporters, access to reliable shipping is particularly important because transportation costs can determine whether products remain competitive once they reach another country’s market.
Dangote’s experience illustrates the problem at an industrial scale.
If a 1,000-tonne shipment cannot easily secure a vessel for a relatively short regional route, companies may be forced to rely on slower or more expensive alternatives.
Ghana is an important regional market
The proposed shipping strategy could be particularly significant for Dangote’s cement business.
Ghana is a neighbouring West African market, meaning the distance between the two countries would ordinarily make regional trade relatively straightforward.
Yet border charges, road transportation costs and limited maritime capacity can complicate the movement of goods.
A dedicated shipping operation could help Dangote overcome some of those constraints while giving the company greater flexibility in serving Ghana and other markets.
The bigger African trade problem
Dangote’s shipping plans also point to a much broader challenge for African economies.
The continent has made progress towards increasing intra-African trade, but businesses continue to face high transportation costs, border delays and infrastructure gaps.
Producing goods locally is only one part of the equation.
Companies also need reliable and affordable ways to move those goods from factories to consumers in other countries.
For large industrial groups, controlling logistics can therefore become almost as important as controlling production.
A new logistics arm for Dangote?
If Dangote proceeds with the vessel purchases, the move could mark another significant expansion of the group’s logistics capabilities.
Owning ships would require substantial investment and introduce new responsibilities, including vessel management, maintenance, crewing, insurance and regulatory compliance.
But the potential benefits could be considerable if the company can consistently move large volumes of cement and other products between African markets.
For Dangote, the calculation appears to be straightforward: if finding ships is becoming a barrier to selling products, owning the ships may be the next logical step.
The immediate trigger may have been a 1,000-tonne shipment to Ghana, but the underlying objective is much bigger — building a supply chain capable of supporting Dangote’s ambitions across West and Central Africa.
