Global business software vendor SAP has signed a multimillion-euro deal with the Dangote Group, one of the largest and most diversified business conglomerates in Africa.
In a statement, SAP says this "marks one of the most significant SAP deals in Africa and it is expected to be phased over a three-year period".
In August, SAP said it aimed to achieve at least $1 billion - or R8.2 billion - in revenue from operations in Africa within the next five years.
The group, listed on the Frankfurt and New York stock exchanges, is targeting Africa's fastest growing economies in a bid to reach this "conservative" target, said co-CEO Bill McDermott. He said he wants the African business to grow in triple digits. "We have no interest in excuses; that's not how we roll."
The Dangote Group is a multibillion-naira manufacturing facility that operates across Africa and is headquartered in Lagos, Nigeria. Its core business focus is to build manufacturing capacity to generate employment and provide goods for the African continent.
It has an annual turnover of more than $3 billion and its interests span a range of sectors in Nigeria and across Africa, including cement, sugar, salt, pasta, beverages and real estate. In August, the Nigeria-based company went live with the SAP Business Suite, which was implemented by SAP partner KPMG.
Mike Okwechime, account executive for large enterprises in SAP West Africa, said: "Dangote has now become the first company in Nigeria to have an agreement that spans across other African countries, like SA, Senegal, and Ghana."
The agreement was specifically made with Dangote Industries Limited, the holding company for the entire group. The deal means Dangote will now have the SAP platform across all of its businesses.
The software will enable Dangote to move from a manual-based system to one that is more integrated, automated and provides transparency into its finances. In addition, SAP Business Suite has also provided Dangote with management insight across the group.
Dangote now has a single integrated system that provides a view of all business systems across the various industries the group operates in, says SAP in a statement.
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