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African newsbytes: South Africa and Kenya

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World Cement,

Cement sales in South Africa reportedly grew 4.6% in 3Q14, having contracted through the first half of the year. Cement volumes produced and sold locally reached 3.39 million t in 3Q14, and 8.91 million t in the first 9 months. This was down from 9.06 million t in the first 9 months of 2013 and sales were 1.7% down. South African cement demand is just over 12 million tpy, having fallen from a high of 14 million tpy in 2007, while capacity is expected to grow to 19 million t. Meanwhile, imports have gained a market share of 8%, with imports of cheap cement from Pakistan highlighted as a particular problem for the domestic industry. The International Trade Administration Commission is looking into this.

In Kenya, the construction industry is reported to have grown by 11% between July and September thanks to investment in public infrastructure projects and real estate development. This is an improvement on the 8.6% growth rate recorded in the same period of 2013, and led to an 11.1% increase in cement consumption over the three months. Infrastructure projects such as the Lamu Port expansion project and railway construction between Mombasa and Nairobi are good news for the cement industry, as reported yesterday. China Road and Bridge Corporation, which is the main contractor for the railway project, has already signed contracts with local producers for cement supply.

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