East African cement on the rise

Increasing cement demand in East Africa, fuelled by greater construction investment in countries such as Kenya, Ethiopia, Uganda and Tanzania, is increasing equipment supply to the region – especially from Germany and China.

Cement demand in East Africa is set to grow so expansion of current manufacturing capacity is likely. This could result in a major boost for foreign suppliers of cement making equipment and machinery.

East Africa’s installed cement capacity is currently estimated at 15.6 million t, with 8.6 million t of that figure produced in Kenya. Tanzania, Uganda and Rwanda have 4.9, 1.95 and 0.15 million t of cement capacity respectively.

The region’s clinker capacity is also estimated to be 5.98 million t, including Kenya’s 3.18 million t. Tanzania, Uganda and Rwanda have an estimated 1.87, 0.86 and 0.07 million t of clinker capacity respectively.

“Despite the headwinds facing countries that are dependent on commodity exports, investors remain bullish over African cement markets, attracted by ongoing strong real GDP growth, forecast to average 4.5% in 2015, rising purchasing power and development of numerous infrastructure and housing projects,” says a recent Africa cement industry analysis by Ecobank.

A new wave of investments has also hit East Africa’s cement industry led by Nigeria-based quoted cement maker Dangote Cement, which has a US$452 million, 3 million t-capacity plant in Tanzania’s Mtwara region, and a 1.5 million t factory in Kenya worth US$300 million. Rwanda’s sole cement maker, CIMERWA, has just unveiled its new US$170 million plant with capacity to produce six times the current 100 000 tpy.

Edited from source by Joseph Green. Source: ARI

Read the article online at: https://www.worldcement.com/africa-middle-east/13072016/east-african-cement-rising-521/