In a strategic move set to reshape the African food industry, Dangote Industries Limited, the umbrella company of numerous firms led by Africa’s richest man, Aliko Dangote, has unveiled its plans to merge three of its food subsidiaries into a formidable force.

The consolidation will combine NASCON Allied Industries Plc, renowned for its salt-making expertise, with Dangote Sugar, the largest sugar refinery in sub-Saharan Africa, and Dangote Rice, a prominent player in the rice business.

The bold merger aims to propel the conglomerate to new heights and seize a substantial share of the rapidly growing African food market.

This visionary step follows the footsteps of BUA Group, a competitor in the food sector, which recently succeeded in integrating its food businesses into the renowned BUA Foods brand. The Dangote Group’s strategic move is expected to not only solidify its market position but also stimulate economic development across the continent.

Speaking about the significant development, Aliko Dangote, the President of the Dangote Group, expressed his enthusiasm for the merger and its potential impact on the African economy. He emphasized the conglomerate’s commitment to resolving economic challenges faced by African nations and their people.

According to Mr. Dangote, “Our massive investments of over 20 billion dollars across key industries, including Energy, Agriculture, and Infrastructure. Our recently commissioned 3 Million Metric Tonnes Fertilizer Plant, expansions in cement production, and our soon-to-be commissioned 650,000 barrels per day world’s largest single-train refinery are all set to empower farmers, foster backward integration, create thousands of jobs, eliminate our dependence on imported products, and improve our nation’s foreign exchange earnings significantly.”

The consolidation will enable the unified entity to cater to diverse consumer preferences while driving innovation in the food industry. With NASCON and Dangote Sugar already listed on the Lagos Stock Exchange, and Dangote Rice poised for future listing, the merger is expected to attract significant attention from investors, with potential impacts on market capitalizations.

Recent financial performance indicators for Dangote Sugar and NASCON further highlight the companies’ strength and potential for growth. Dangote Sugar Refinery Plc achieved a remarkable revenue milestone of 400 billion naira in 2022, representing a 48% growth compared to the previous year. Similarly, NASCON experienced a staggering 325.28 percent increase in profit during the first quarter of 2022, signaling robust market demand for their products.

The African continent is witnessing an increasing need for dismantling economic barriers to promote free trade among nations. Aliko Dangote has been a vocal advocate for this approach to achieve sustainable growth and development across Africa. The conglomerate’s commitment to investing over 20 billion dollars across vital sectors such as energy, agriculture, and infrastructure underscores their determination to transform the economic landscape of the continent.

By uniting their food businesses into a single dominant force, Dangote Industries Limited aims to revolutionize the African food industry, bolster economic development, and play a significant role in the continent’s sustainable growth journey.