Congo Rep to benefit from rising investment

Congo Rep to benefit from rising investment
17 April 2014

The Republic of Congo is increasingly attracting foreign investment into its cement industry. By 2016 three further cement plants are expected to come online as the government aims to expand the country’s production base. Morocco-based CIMAF plans to build a cement works in Kouilou, Nigeria’s Dangote in Bouenza and India-headquartered Diamond Cement in Pool.

With 4m inhabitants, Congo’s current cement demand stands at 2Mta. At present only a relatively small part of this is supplied by two local cement companies, Société Nouvelle des Ciments du Congo (a local and Chinese joint venture) and China’s Forspak. Even after Forspak’s capacity increase to 0.6Mta, the country is forecast to rely mostly on an irregular flow of imports unless further plants are built.

"The aims of the government in increasing cement production are to reduce both the import of construction materials rate and to lower the purchase price of this raw material" , said the Minister of Industrial Development, Isidore Mvouba.

The low local production at present is pushing up both wholesale and retail prices with the price of a 50kg bag between XAF7500-8000 (US$15.83-16.88) in Brazzaville.

The government also plans to make Congo self-sufficient in cement and in the future, turn the country into a cement exporter.

Published under Cement News