Dangote Cement - August 2019

Dangote Cement is among five companies calling for an investigation into cement imports into South Africa. According to The Concrete Institute (ITC), imports have risen by 139 per cent since 2016. In the 2Q19, 350,441t of cement arrived in South Africa, the highest level since the 3Q15. Imports from Vietnam alone totalled 301,872t. Most of the cement imports come through Durban, which handled 260,909t in the second quarter of this year, marking an 85 per cent increase on the 1Q19.

On behalf of Dangote, AfriSam, Lafarge, Natal Portland Cement and PPC, the ITC is calling on the International Trade Administration Commission (ITAC) to look into the flood of imports, which the ITC says is undercutting South African cement prices by as much as 45 per cent. South Africa’s producers have also had to adjust to the introduction of a new carbon tax in June this year, which has led to a two per cent increase in selling prices, putting local producers at a further price disadvantage. According to Brian Perrie, managing director at ITC, the producers in question are not looking for a ban on imports but “the cement industry must compete on a level playing field and not be scrambling to survive against low priced imports”.

Meanwhile, in Nigeria, Dangote has said that its cement terminals in Lagos State and Onne would be operational by the end of 2019, realising an estimated US$700m in foreign exchange through exports. The company plans to export through the terminals to Ghana, Cameroon, Sierra Leone and Congo, making Nigeria the largest exporter of cement in sub-Saharan Africa.