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Dangote invests R779m in Sephaku cement projects

25 August 2010

Publication: Engineering News
Author: Loni Prinsloo

JSE-listed Sephaku Holdings confirmed on Wednesday that the Nigeria’s largest cement company, Dangote, would invest an additional R779-million into its subsidiary company Sephaku Cement.

The investment would increase the Dangote Group’s equity stake in Sephaku Cement from 19,76%, which it acquired in 2008, to 64%, and completes the equity requirements for existing projects.

Sephaku Holdings CEO Neil Crafford-Lazarus said that the company had now secured the full equity requirement for its cement projects and would be well positioned to finalise debt funding terms.

The equity investment by Dangote would be used to fund the development of Sephaku Cement’s Aganang and Delmas projects in South Africa.

The Aganang project includes a limestone mine and a cement manufacturing plant in North West province and is scheduled to produce about 900 000 t/y of cement by 2012.

Sephaku’s Delmas project comprises a cement milling plant in Mpumalanga province, which would produce 1,25-million tons a year of cement by late 2012.

Dangote group CEO Alhaji Aliko said that the investment would provide the company with an enhanced presence in the South African market.

“We are looking forward to producing cement by the end of 2012, as we seek to become the largest cement producer in Africa by 2014,” he added.

Dangote is currently the largest cement producer in Nigeria and will have a cement production capacity of 16-million tons by the first quarter of 2011.

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Bodibeng Trading Proprietary Limited

Founded by Mr Gaopalelwe Olebogeng from the Verdwaal Village in the North West province who is the sole managing member of Bodibeng Trading Proprietary Limited. Mr Gaopalelwe has previous experience in plant cleaning that he acquired during his tenure as a plant cleaner at another cement company in Lichtenburg. Bodibeng Trading Proprietary Limited employs 36 employees from the local community and currently has a short-term contract with SepCem which includes mentorship to ensure that it effectively provides the plant cleaning services at Aganang.


Mancamane Trading Enterprise

Mancamane is a black female-owned enterprise that started operating in 2010 as a plant cleaning, construction and mining supply company. Ms Daisy Maseko, a renowned entrepreneur, founded the enterprise in the Delmas area, Mpumalanga province and currently employs 28 permanent staff. SepCem adopted Mancamane into the enterprise development programme in 2014. The company is currently supplying plant cleaning services to the Delmas grinding plant and has demonstrated the ability to grow sustainably.


MM&JK Cleaning Projects Proprietary Limited

In 2014, SepCem contracted the cleaning services of MM&JK Cleaning Projects, an enterprise established in 2013 by Mr Sipho Mazibuko from a village called Springbokpan in the North West province. SepCem identified MM&JK Cleaning Projects as a well-managed enterprise that is appropriately suited to benefit from the programme. In the case of MM&JK, SepCem has partnered with another major industrial organisation to mentor Sipho.

The partner’s role is to assist MM&JK Cleaning Projects with inproving its cleaning skills through training, providing cleaning equipment and required detergents. SepCem’s role is to develop Sipho’s business management skills including cost management, record keeping and negotiation. SepCem is assisting MM&JK to develop a marketing strategy to increase its customer base to reduce the single-customer dependency risk and ensure that the company is sustainable. MM&JK Cleaning Projects currently has a three-year contract with SepCem for general cleaning at Aganang and employs 14 permanent staff.



Millicent’s Enterprise

Millicent’s Enterprise is 100% black female-owned and was founded by Ms Millicent Mahlabe, an entrepreneur from Delmas in the Mpumalanga province. The company was selected for the programme because it has historically demonstrated the ability to supply large contracts but lacks administration skills. Millicent’s has a good reputation and positive track record of being able to cater for large provincial government events.

SepCem secured Millicent’s catering services in 2013 for its canteen at the Delmas plant that provides meals to 150 employees. Millicent’s currently has seven permanent employees and several contract employees who are sourced as and when required.