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Released May 24, 2024 | NEW DELHI
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Researched by Industrial Info Resources (Sugar Land, Texas)--Africa is witnessing a surge in demand for cement due to the burgeoning construction sector in the region. The population of Africa is expected to witness a twofold increase by 2050, and more than 70% of the buildings that will exist by 2040 have yet to be constructed, consequently, fueling substantial investments in Africa's cement industry.
The construction market in Africa is mainly driven by residential and commercial construction projects, which in turn are driving the demand for cement in Africa. In addition, with an expanding African economy coupled with rising incomes, the consumption of cement is further propelled by growing housing needs.
Moreover, government efforts aimed at improving infrastructure, such as the construction of roads, bridges and dams, necessitates the establishment of a strong cement sector.
Industrial Info is tracking more than 200 active cement-related projects in Africa, with investments nearing US$14 billion. Around 51% of the total projects are geared at grassroot projects, while approximately 40% are attributed to unit additions. Around 53% of the total spending is in the planning phase, 20% is in the engineering phase and the remainder is under construction.
The sub-Saharan region is at the forefront of the cement market, accounting for 85% in the African cement market, with Eastern and Western Africa driving the majority of this share. Sub-Saharan Africa is expected to witness the most significant growth in cement demand due to its large and rapidly growing population, along with ongoing infrastructure development. According to a report by the World Cement Association, sub-Saharan Africa is estimated to witness 77% growth in the cement market by 2030.
Eastern Africa is the top spending driver, with investments worth US$6.31 billion across 77 projects. The majority of the spending is concentrated in Ethiopia (US$1.43 billion). In Ethiopia, East African Holding plans to construct a US$300 million integrated cement plant with 2 million tons per year of cement production capacity. Tanzania follows with a total spending of US$1.39 billion. Hengyuan International Engineering Group Company Limited is planning to invest US$700 million to set up a 3-million-ton-per-year grassroot cement plant in Mkinga, Tanzania. Kenya and Uganda are also driving noteworthy spending (US$1 billion each). Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can read detailed reports on projects in Ethiopia and Tanzania.
Western Africa is home to 55 cement-related projects worth US$5.04 billion, and around 63% of the total spending is driven by Nigeria. Dangote Industries Limited is the dominant player in the country and is investing around US$1.31 billion across several projects. That includes an investment of US$600 million aimed at constructing an integrated cement plant with 6 million tons per year of production capacity in Itori, Nigeria. Click here to read the project report.
Next in line is North Africa with investments worth US$1.37 billion across 53 projects. The spending is largely driven by Egypt, Morocco and Libya, together accounting for a 92% share. The majority of the projects in North Africa are attributed to unit additions. Cemos Group Plc, South Valley Cement Company and Chemical Industries Holding Company are some of the prominent players in the region.
Southern Africa is witnessing investments worth US$412 million across 16 projects. As the region faces competition from cheap cement imports, South Africa is aiming to ramp up its domestic cement production. The majority of the spending is aimed at grassroot projects.
While the expanding demand for cement in Africa, driven by infrastructure development, will continue to fuel investments in cement production, several hurdles still remain. Inadequate transportation networks and power supply poses logistical challenges for cement manufacturers which can impact production costs. Domestic production further faces competition from cheap imports in various regions of Africa, posing significant cement cost-related challenges.
Subscribers to the GMI Database can click here for all project reports mentioned in this article and click here for related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The construction market in Africa is mainly driven by residential and commercial construction projects, which in turn are driving the demand for cement in Africa. In addition, with an expanding African economy coupled with rising incomes, the consumption of cement is further propelled by growing housing needs.
Moreover, government efforts aimed at improving infrastructure, such as the construction of roads, bridges and dams, necessitates the establishment of a strong cement sector.
Industrial Info is tracking more than 200 active cement-related projects in Africa, with investments nearing US$14 billion. Around 51% of the total projects are geared at grassroot projects, while approximately 40% are attributed to unit additions. Around 53% of the total spending is in the planning phase, 20% is in the engineering phase and the remainder is under construction.
The sub-Saharan region is at the forefront of the cement market, accounting for 85% in the African cement market, with Eastern and Western Africa driving the majority of this share. Sub-Saharan Africa is expected to witness the most significant growth in cement demand due to its large and rapidly growing population, along with ongoing infrastructure development. According to a report by the World Cement Association, sub-Saharan Africa is estimated to witness 77% growth in the cement market by 2030.
Eastern Africa is the top spending driver, with investments worth US$6.31 billion across 77 projects. The majority of the spending is concentrated in Ethiopia (US$1.43 billion). In Ethiopia, East African Holding plans to construct a US$300 million integrated cement plant with 2 million tons per year of cement production capacity. Tanzania follows with a total spending of US$1.39 billion. Hengyuan International Engineering Group Company Limited is planning to invest US$700 million to set up a 3-million-ton-per-year grassroot cement plant in Mkinga, Tanzania. Kenya and Uganda are also driving noteworthy spending (US$1 billion each). Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can read detailed reports on projects in Ethiopia and Tanzania.
Western Africa is home to 55 cement-related projects worth US$5.04 billion, and around 63% of the total spending is driven by Nigeria. Dangote Industries Limited is the dominant player in the country and is investing around US$1.31 billion across several projects. That includes an investment of US$600 million aimed at constructing an integrated cement plant with 6 million tons per year of production capacity in Itori, Nigeria. Click here to read the project report.
Next in line is North Africa with investments worth US$1.37 billion across 53 projects. The spending is largely driven by Egypt, Morocco and Libya, together accounting for a 92% share. The majority of the projects in North Africa are attributed to unit additions. Cemos Group Plc, South Valley Cement Company and Chemical Industries Holding Company are some of the prominent players in the region.
Southern Africa is witnessing investments worth US$412 million across 16 projects. As the region faces competition from cheap cement imports, South Africa is aiming to ramp up its domestic cement production. The majority of the spending is aimed at grassroot projects.
While the expanding demand for cement in Africa, driven by infrastructure development, will continue to fuel investments in cement production, several hurdles still remain. Inadequate transportation networks and power supply poses logistical challenges for cement manufacturers which can impact production costs. Domestic production further faces competition from cheap imports in various regions of Africa, posing significant cement cost-related challenges.
Subscribers to the GMI Database can click here for all project reports mentioned in this article and click here for related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
