Read part 2 here.
The economy of Africa’s second biggest oil producer grew by 5.1% in 2013, according to African Economic Outlook, but it was below the anticipated figure of 7.1%. Growth is projected to reach 7.9% this year and 8.8% in 2015, as major public infrastructure investment comes through. While the economy has been strong, the country’s social indicators have not kept pace. About 36% of the population lives below the poverty line and unemployment remains high at 26%. Major investment is being made to expand access to electricity, water and transport. The construction industry is expected to be boosted by government investment, as part of a drive to develop the country’s infrastructure. BMI notes that continued investment from China, Brazil and Portugal will be crucial to support infrastructure projects. China has participated actively in Angola’s post-war reconstruction, playing a major role in building and repairing highways, railways, power plants and harbours.
In February of this year, the local press carried reports that the country would be restricting imports of cement. There are certain exceptions, such as the import of special cements and the sale of imported cement in areas along Angola’s borders. The country has a cement production capacity of 8 million tpa, while local demand is estimated to be about 6.5 million tpa. If all current projects are realised, production will exceed 10 million t by 2016.
In June, the Angolan press reported that the Nova Cimangola cement plant will receive US$116 million from the government to increase the plant’s capacity. After Cimpor had divested its stake in the company, the shareholders are now Ciminvest, the Angolan state, Banco Angolano de Investimentos and private individuals.
Domestic economic activity in Cameroon has remained solid. GDP growth in 2013 reached 4.9% and it will remain throughout this year and into 2015. Domestic demand has continued to grow, driven by major infrastructure projects and the government’s measures to revive production in several sectors. Richard-Antonin Doffonsou and Lisa Simrique Singh from African Economic Outlook say that the country has a limited role in global value chains but has a proactive policy to develop the promising agriculture, forestry, livestock and fisheries sectors.
Last month, Dangote Group’s new 1 – 1.5 million t grinding plant, situated on the shoreline of the River Wouri, became operational. Sinoma was heavily involved in the project. This plant, together with the CIMENCAM plant (owned by Lafarge) and the Addoha plant (500 000 tpa), owned by Ciments de L’Afrique, will not only be in competition with each other; they will also be up against the 800 000 tpa G Power Cement plant and the troubled Afko Cement plant, which was still being built some six years after construction started in 2008. In February of this year, the Hanoi Times reported that Xuan Thien Ninh Binh had been licensed to invest in a 2000 MW hydropower plant and a cement plant in Cameroon. Production is scheduled for 2015 while the power plant should begin generating in 2018. It is understood that the country had been importing about 500 000 tpa of cement, while the yearly demand is 4 million t. Efforts by the government to boost production have seen supply increase from 1.6 million t to an estimated 2.2 million t, leaving a shortfall of 1.8 million t, according to a press statement by allAfrica.com. The new and proposed plants should see off imports in due course.
Sources: see Part 1.
Read the article online at: https://www.worldcement.com/africa-middle-east/09092014/sub-saharan-selection-404/