Driven by rapid urbanization, increasing infrastructure development projects, and rising construction activity, Africa’s cement market is surging.
The boom is also resetting the continent’s cement production landscape with the entry of new players.
Facing a stagnant property market which has affected prices, and stringent environmental regulations back home, Chinese cement makers have been running to establish or acquire operations in Africa.
Led by Huaxin, Chinese companies invested in nine new cement projects in Africa in 2023, and five in 2024.
“We’ve got this enormous infrastructure deficit in Africa. We’ve got this enormous demographic story that’s continuing to play out,” says Aly-Khan Satchu, the CEO of the East African Financial Portal.
”And therefore, I think the Chinese are looking at the medium term and saying to themselves, you know, this is potentially another China not so monolithic and not so linear, but potentially a similar story. And I think that’s what they’re really looking at,” Satchu adds.
With 10 cement plants with a production capacity of about 18 million tonnes per year, Huaxin is now sub-Saharan Africa’s second largest cement producer.
Dangote remains the region’s leading cement maker, with an annual capacity of 52 million tons.
Industry experts predict demand to stay strong in Nigeria, South Africa, Kenya, and Ghana.
“With respect to the likes Dangote, Dangote understands Africa. I mean, we know that. I think I expect him to grow his business. He took a big bet. I think that bet will spread geographically and I expect the Chinese all said, you know this, who I see in cement expansion, I think is going to be the start of something much bigger as more Chinese players enter the market. And I should expect other BRICS types entities to look at the African continent more aggressively. India, for example, and maybe even the likes of Brazil,” Satchu explains.
Cement production is associated with pollution, experts say African governments need to emphasize environmental sustainability, and to enact strong policies to balance growth with local industry development.
Africanews/Hauwa M.
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