The African cement market offers some growth spots for investors despite excess capacity and competition

Africa had c448.6mtpa of installed capacity in 2022, but with only c246.8mt of demand, excess capacity was 45%, and utilisation rate was c54.4%, on our numbers. The incumbents – Dangote Cement, Holcim Group and Heidelberg accounted for 39.6% of installed capacity. Chinese firms – Huaxin and West China Cement have made investments since 2020.

We believe competition risk will intensify across several African markets as new capacity comes online, mainly from Dangote, Huaxin, and West China Cement. Our clients can request the full report detailing what the incumbents are doing and which countries Huaxin and West China Cement are setting up production.