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News from Kenya and Ethiopia

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World Cement,

ARM Cements, Kenya’s second largest cement manufacturer, is considering establishing a new plant in South Africa. The board of directors is yet to approve the plans, which involve Mafikeng Cement, a company in which ARM Cements has a majority stake, raising US$300 million to build a 3000 tpd plant. ARM Cements is reportedly considering selling Eurobonds to help fund the project.

Further north in Ethiopia, Habesha Cement S.C. has secured a letter of credit from the Eastern & Southern Africa Trade & Development Bank. The Bank, known as the PTA, is lending US$50.4 million to pay the Chinese contractor that is carrying out the project, which has faced severe delays due to financial difficulties. With the letter of credit opened at the contractor’s bank, work can begin as soon as this month, according to Habesha Cement’s CEO.

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