The Manufacturing Circle has mirrored industry worries that the acquisition of AfriSam could lead to the exploitation of cheap cement imports at the expense of local producers.
The Competition Commission approved the two-point ZAR5bn (US$300m) acquisition bid in December, allowing West China Cement to purchase the business. Philippa Rodseth, executive director of the Manufacturing Circle, warned that creating a regional production and distribution network could result in the abuse of preferential trade access.
Countries within the Southern African Customs Union and the Southern African Development Community currently enjoy this trade access for various goods, including cement.
This transaction carries potential risks for a South African cement sector that is already structurally oversupplied. Local manufacturers are currently struggling with weak domestic demand, excess capacity, and escalating electricity and logistics costs.
Rodseth emphasised the importance of continuous monitoring regarding import volumes and pricing behaviour to spot market distortions early. She also highlighted the need to enforce strict rules of origin and to implement trade remedy mechanisms quickly if dumping occurs. Finally, the commitments made to the Competition Commission regarding public interest, such as specified capital expenditure targets, must be closely watched.
