HeidelbergCement and IFC, a member of the World Bank Group, signed an agreement to support the development of local infrastructure in Sub-Saharan Africa by increasing the local supply of cement. Eventually, as much as US$180m might be injected in what will remain a minority participation. One of the first uses of the additional funding will be to increase the cement milling capacity in Liberia. Further projects under consideration include additional cement investments in Ghana, Togo and Gabon.
These projects should all be well under way by 2013 and cover both additional milling and kiln capacities.
HeidelbergCement is committed to use the proceeds to invest in the expansion of local cement capacities in sub-Saharan countries supported by the International Development Association (IDA).
"We are very happy about the partnership with IFC that creates a win-win situation for all parties involved," explains Dr. Bernd Scheifele, CEO of HeidelbergCement.
"Through the co-operation with IFC, HeidelbergCement secures attractive equity financing for the development of local cement capacities in Africa. In this partnership we will contribute our long-standing international experience in the construction material industry and strong governance, ethical and environmental management policies. The investment programme will stimulate the improvement of local infrastructure and housing, create additional jobs and improve environmental standards."