Dangote, SAP sign biggest African tech deal

JohannesburgThe world’s leading provider of business software recently signed a multimillion-euro deal with Dangote Group, one of the largest and most diversified business conglomerates in Africa. This marks one of the most significant SAP deals in Africa and it is expected to be phased over a three-year period.

Dangote Group, a multibillion-baira manufacturing facility that operates across Africa and is headquartered in Lagos, Nigeria, turned to SAP to increase transparency and efficiency within the group. Dangote’s core business focus is to build manufacturing capacity to generate employment and provide goods for the African continent.

Dangote Group officially went live with the SAP Business Suite as of Wednesday, 1 August 2012, implemented by SAP partner KPMG. The group is the first Nigerian company to have an agreement in Nigeria that covers countries outside of the West African country.

The agreement was specifically made with Dangote Industries Limited, which is the holding company for the entire group. The strategic importance of this deal means Dangote will now have the SAP platform across all of its businesses.

The deal follows the continued strengthening of relationships between SAP and Dangote and is the largest in Nigerian history, confirming that SAP helps the best businesses run better.

SAP Business Suite 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 key 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. SAP has enabled the Dangote Group to manage its costs better and boost its bottom line by driving standardisation, as well as lower total cost of ownership and increased efficiency.

Mike Okwechime, account executive for large enterprises in SAP West Africa, said Dangote has recognised SAP as a technology leader in industry solutions. “The top manufacturing companies in Nigeria, like Nestle, Heineken, Unilever, Cadbury, UAC and Guinness, all run SAP. Dangote has now become the first company in Nigeria to have an agreement that spans across other African countries, like South Africa, Senegal and Ghana.

“With the continued investment that SAP is making in Nigeria, we are elated to witness the fruits of that investment, which has now been tangibly demonstrated by the very first Nigerian company that is expanding into the rest of the world, and they are doing that with the SAP platform.”

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