EUR 400.00 For Business Accounts Only

Pan-African Cement Industry: Overcapacities to be managed in the short term

• An industry of vital importance for housing and basic infrastructure, playing de facto a key role in the economic development of African countries with a variable weight depending on the demand level and factors of competitiveness;
• Very energy-intensive, the cement industry depends on the orientation of the economy and the health of the construction sector, hence the cyclical phase of growth;
• Cement self-sufficient since 2017, Nigeria is the largest producer of cement in Africa after Egypt (55 MT in 2018) thanks in particular to the giant DANGOTE CEMENT, ahead of Morocco (21.6 MT), Tunisia (11.9 MT) and other West African countries with a total capacity of nearly 26 MT;
• The pan-African giant DANGOTE CEMENT has a production capacity of 47.6 MT, of which 29.3 MT in Nigeria, while in Morocco, LAFARGEHOLCIM MAROC has an installed capacity of 11.8 MT;
• Promising growth prospects on the continent in a context marked by the sharp increase in housing demand driven by strong population growth and urbanization;
• Recommendation to buy the three cement companies listed on the Nigerian Stock Exchange, DANGOTE CEMENT PLC, CEMENT COMPANY OF NORTHERN NIGERIA PLC and LAFARGE AFRICA PLC and to hold the two Moroccan cement producers, LAFARGEHOLCIM MAROC and CIMENTS DU MAROC.