Turbulent times for Africa?

Published 17 September 2019

For the cement sector, turmoil has probably come to a head in many parts of Africa. Cement demand has slowed or fallen back into the red in many African countries, while overcapacity and low utilisation rates are characteristic of many markets. However, much of this turmoil is self-inflicted. Tony Hadley provides an uncompromising assessment of the industry on the continent and examines the root causes of business failure in some key markets. By Tony Hadley African Advisory.

A perfect storm is brewing in the African cement industry

The proverbial perfect storm is brewing in Africa as its cement industry continues to expand, building overcapacity on top of overcapacity in many markets. In Egypt Sinoma built a 12Mta, >EUR1bn plant for the country’s military and Hengya Cement (Tanzania) Co Ltd threatens 7Mta works in Tanga, an already-overcrowded market. In Kenya and Uganda massive cement grinding overcapacity exists. In Zambia Chinese players are building additional production facilities: the 2Mta plant of CNBM with ZCCM Investment Holdings is under construction in Ndola and Sinoma Mpande Limestone Ltd is ramping up its 1.2Mta plant near Lusaka and is pushing aggressively into the market.

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