Dangote Cameroon lost 8% market share in two years

(Business in Cameroon) - At the end of September 2022, the Douala-based clinker grinding plant owned by Dangote Cement Cameroon sold about 998 kilotons (998,000 tons) of cement. Compared with 1 million tons during the same period in 2021, this volume marks a slight drop of 0.2%.

In addition to this slight decline in sales, the company suffered a setback in market share. "We estimate that our market share fell to 31% during the period under review,” the company indicated, stressing that two years ago, the market share was 39%.

In 2021, Dangote already announced the decline in its market share in Cameroon. That year, the company said its market share was estimated at 34% compared to 39% in 2020, a decline of 4%. Dangote Cameroon said this situation was due to the rising cost of clinker following the global rise in transport prices and the disruptions in the global supply chain.

Also, with production capacity limited to 1.5 million tons per year, the company has very little room for growth. Cimencam, Dangote’s main competitor, which has a larger production capacity (2.2 million tons which should increase to 2.5 million in 2023), has therefore more chances to take advantage of the increase in demand to boost its market share.

S.A.