Dangote’s expansion: driving African capitalism

Abstract

Subject area: Doing business in Africa, strategy, leadership. Study level/applicability: The case is intended for use in MBA and Executive Education courses in Strategy, Business in Africa and Leadership. Case overview: This case study examines the growth of the Dangote Group in Nigeria and its ambitious expansion across Africa. Driven by the visionary leadership and energy of founder, President and CEO Aliko Dangote himself, the rise of the Dangote Group also represents the changing geopolitics of the African region. A true conglomerate, the company dominates every niche in which it operates. Best known for its cement, Dangote is also active in sectors as diverse as pasta, real estate and steel. It has expanded into the oil industry and is building a refinery in Nigeria, an oil-producing state that imports most of its fuel requirements because of inadequate refining capacity. The Dangote Group serves as an example of true African capitalism, representing the new and somewhat nuanced style of doing business in Africa, which involves undertaking capital intensive projects; using unique methods, management approaches, technologies and innovations; leveraging state connections for business advantage; and understanding the growing need for local partners or local content in new markets across the continent. Expected learning outcomes: Students should gain insights into various business strategies in Africa, contextual leadership intelligence and the role of institutions when doing business in Africa. Supplementary materials: Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code: CSS 11: Strategy.