Dangote’s next target: tomatoes

Aliko Dangote, one of Africa’s most successful businessmen, has turned his attention to tomatoes. Dangote Group, Dangote’s Nigerian conglomerate, has started a $20 million tomato processing facility in Kano state, northern Nigeria.

The plant has a daily production capacity of 1,200 metric tones and will produce more than 400,000 tons of paste annually. Dangote’s plant is to compete for a share of Nigeria’s tomato paste market with cheap imports from China. Nigeria imports roughly 300,000 tons of tomato paste from China every year, valued at about $360 million.

The plant will source the largest part of its raw material from farmers in the Kadawa Valley in Kano state. Dangote will pay them a guaranteed price of about $700 per ton of tomatoes compared to an average of less than $350 that they receive until now.

Further reading on forbes.com

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