A report conducted by the financial advisory company Renaissance Capital (RenCap) has revealed that Nigeria is now the largest cement manufacturer in Sub-Saharan Africa and the third largest in the Middle and East Africa regions (behind Egypt and Saudi Arabia) due to an increase in production capacity in the country.
According to the report, the Nigerian cement industry capacity has reached 28 million tpa. South Africa is currently producing at a rate of 18.3 million tpa and the rest of the region combined has a capacity of 62 million tpa of cement. The introduction of the Backward Integration Policy (BIP) in the Nigerian cement sector has also seen the industry’s production almost double between 2005 and 2012. RenCap has predicted that Nigeria will continue its high production levels, peaking at around 50 million tpa in 2020.
The strong performance in Nigeria has also been mirrored in the share prices of cement companies such as Dangote Cement, Lafarge WAPCO, Ashaka and the Cement Company of Northern Nigeria (CCNN), which are returning at a higher rate than the Nigerian Stock Exchange All Share Index.
David Nangle, leader of the RenCap research team, told local press that the cement market in Nigeria has changed considerably over the past few years due to rising demand, increased investment, economic growth and favourable government regulation. The company is reported to be optimistic about the sustainability of Nigerian cement demand and production in the long-term.
Edited from various sources by Rosalie Starling
Read the article online at: https://www.worldcement.com/asia-pacific-rim/28112013/nigerias_cement_production_surpasses_south_africa_461/