Dangote to Pay New Cement Tax in Senegal

Dangote

The government of Senegal has slammed a new cement tax of $4.84 per ton of cement on the country's three cement plants run by Dangote Cement, Ciments du Sahel and Sococim. The investigation by Vanguard showed that the new tax took effect from January 2, 2017.

It was further learnt that the tariff increase has been attributed to a 25 percent surge in exports, although local sales have also risen slightly.

According to data from the Directorate of Forecasting and Economic Studies (DPEE) in Senegal, cement production rose by 10 percent year-on-year to 5.15 million metric tonnes in the first 10 months of 2016 from 4.68 million metric tonnes in the same period in 2015 at the Ciments du Sahel and Sococim plants.

Recall that Dangote Cement plants in Senegal started production more than two years ago. 'The new plant, located in the Pout district of Senegal, is about 75 kilometres from Dakar, the country's capital, and has a nominal capacity to produce 4,000 metric tonnes per day and 1.2 million metric tonnes per annum.

The plant is expected to create more than 1,000 jobs, with a total production capacity of 1.5 million metric tons annually.

Vanguard