Africa’s leading cement producer Dangote Cement has partnered with e-commerce platform Jumia Nigeria to sell its cement to customers online.
The move, the company says is designed to reduce price and ease logistics inherent in the purchase of its products.
But Dangote’s move is likely to further escalate cement price war in Nigeria.
According to the agreement with Jumia Nigeria,ordinary people and corporate bodies wishing to purchase a minimum of 300 bags of 50kg of Dangote Cement and above can now order on Jumia from the comfort of their rooms at a reasonable price of N2,500 per bag and have the products delivered to any place of their choice without any extra cost for transportation.
“We are starting with Minimum Order Quantity (MOQ) of 300, 600 and 900. We may increase depending on demand surge as time goes on,” Mogbolu explained.
He however said that the purchase would only be within Lagos, Port- Harcourt and Abuja for now.
“For now, the pilot scheme is in Lagos, Abuja and Port Harcourt, but we can extend it to other cities depending on the level of demand and performance of the new deal,” he said.
Magbolu noted that Dangote Cement decided to work with Jumia Nigeria based on its credibility and excellent performance over the years in online shopping management.
Dangote Cement’s entry online means that the firm is constantly innovating. In recent years, the company has sought to expand throughout Africa a move that has seen increased stiff competition.
In 2016, Dangote Cement started exporting its low-cost cement to Kenya from its base in Ethiopia driving retail prices downward in a market where they have remained static for nearly 10 years.
In Tanzania, where Dangote Cement has a footprint, listed cement maker Tanga Cement recently announced a half year net loss and consequently declared no dividend to shareholders,attributing the move to cutthroat competition in the sector.