CW Advisory focus: African cement markets

According to CW Advisory, the African cement business is facing a challenging medium-term outlook, as additional cement capacities are planned or already on the way. One of the most pressing questions for the industry is whether the market is really prepared to absorb the increased output.

As prices will be subjected to even higher pressures, producers will have to squeeze efficiencies fast enough from their organizations, if they are to maintain the relatively high margins currently reported. And to further improve margins in a sustainable and environmentally friendly manner, the industry will have to find ways to develop the alternative fuel ecosystem.

The African cement market is on the brink of experiencing disruptive transformations, as the industry is increasing and maturing. Africa is witnessing the addition of many new capacities in the southern, eastern and particularly western regions of the continent. According to CW Advisory research, new projects coming online in 2014 and 2015 are valued at an estimated USD 1,400 million.4 billion, while an additional USD 900 million worth projects were announced for the balance of 2015.

Read the rest of the article in the CemWeek Magazine, Issue 27.