Africa is inching closer to self-sufficiency in cement production. A multinational, Dangote Cement Plc, is at the forefront of the ambitious drive, with plans to start production at its $300 million cement grinding plant in Congo. Assistant Editor OKWY IROEGBU-CHIKEZIE, who was part of a guided tour of facilities at the Congolese plant, reports.
With gradual closure in the demand and supply gap of cement in Africa, the construction industry is witnessing a dramatic turnaround. It is in the area of product manufacturing, importation, packaging and distribution.
The turnaround is expected to throw the continent into the realm of self-sufficiency in cement.
Besides, meeting the prevailing demand in the construction market, the revolution is saving the continent huge foreign exchange on importation, as well as boosting employment opportunities.
In Congo Brazzaville for instance, an indigenous multinational, Dangote Cement Plc and Africa’s driver of self-sufficiency target in cement, plans to create more than 1,600 direct and indirect jobs. The company’s $300 million plant will soon begin cement production.
According to Plant Director for Congo Operations, Mr. Ganapathy Balasubramanian, the multi-million dollar investment will significantly boost the economy of the Francophone nation and its neighbours after completion.
The 1.5 million metric ton-capacity plant, located in Bouansa, Congo Brazzaville, is billed for completed soon. Balasubramanian also spoke of plans to boost to raise the plant’s production capacity by 1.5 million metric tons, bringing it to three million metric tons.
Speaking during a guided tour of the ultra-modern plant, Balasubramanian said the factory, built on an 80-hectare land, will not only meet the nation’s cement demand, but cater for the export market in countries in Central Africa.
The plant director, who put the project cost at CFA 133 billion (about $300 million), told reporters that factory will get it’s 20 megawatts power needs from Congo’s national grid.
He also informed that the factory has a potential utilisation profile of 99 per cent when upon completion. The Congolese are the latest in the list of Africans to be excited by prospects of massive job opportunities and significant boost in Gross Domestic Product (GDP) following investment by Dangote Cement Plc.
The Central African nation is the latest to join the clubof beneficiaries of the cement giant’s strategic investments across 16 African countries where it targets to achieve a total cement production capacity of 75 Million Metric Tonnes Per Annum (MMTPA) by 2019.
Some of the strategic investments targeted at changing the narrative of Africa’s cement market from dependency on importation to self-sufficiency include: 1.5 million MTpa in Senegal, Zambia’s 1.5 million MTpa (Green-field projects), Tanzania’s 1.5 million MTpa, South Africa’s 2.2 millon MTpa, Ethiopia’s 1.5 million MTpa and Cameroun’s 1.5 million MTpa cement grinding plant.
The company also has cement terminal operations in Ghana (3.0 million MTpa); Sierra Leone (0.5 million MTpa); Ivory Coast (1.0 million MTpa) and Liberia (0.5 million MTpa).
It was learnt that many of the countries limestone deposits, the essential component for cement production in commercial quantity.
The nationals are thrilled by the deposits because of their spin-offs, especially in the area of job creation.
It was the same sentiment in Ethiopia where the inauguration of a 2.5 million MTpa cement plant in the East African country in 2015 was expected to create over 7, 000 jobs. There were also plans to double the plant’s capacity before the end of that year.
At take-off, about 2,000 people were directly employed in the main plant operation and 5,000 others indirectly engaged.
Speaking at the inauguration, President of Dangote Industries Limited (DIL), Alhaji Aliko Dangote, charged African leaders to create a conducive environment for real sector growth, noting that doing so remained the best to create jobs and to reduce poverty.
Dangote also stressed the need for genuine collaboration between the private sector and governments at all levels for the much-needed real sector growth, noting that there must be deliberate efforts to encourage Africans, not just foreigners alone, to invest in Africa.
He said: “Take for example, my company, the Dangote Cement, is currently investing in 16 African countries, with plans to invest in many more over the next few years. We need to encourage this trend to see more investments in Africa by Africans.
“Above all, there is the need to encourage the private sector to collaborate with governments across Africa, to address the issue of infrastructure deficit, which has plagued the continent for decades.”
According to him, “manufacturing, and not trading, is the best way to grow an economy.”
“This event, which we are witnessing today, attests to the fact that we took the right decision when we decided to transit from trading in our home country, Nigeria, into manufacturing, in 1996”, he said.
Dangote, who is Africa’s richest man, noted that his investments in new cement plants and terminals across 16 African countries were in line with his company’s long-term vision to become one of the world’s biggest cement producers.
“We envisage that by the time we complete all our ongoing African projects, we will be on track to achieving our target”, he said.
Nigeria’s cement market leads
No doubt, the Nigerian cement market where the multi-billion dollar investor started his investment drive across the continent remains the biggest and most impactful. The total production capacity of the company’s three plants is 20.25 MMTPA.
The plants are: Obajana in Kogi State (10.25 MMTPA), Ibese in Ogun State (6.0 MMTPA) and Gboko in Benue (4.0MMTPA).
The Obajana Cement Plant (OCP) is believed to be one of the single largest cement plants in the world with a combined 10.25MMTPA capacity. It added a fourth line of 3.0 MMTPA to two years ago. Apart from a 135 mw capacity power plant, the cement plant has a gas pipeline of approximately 90-kilometre length for natural gas supply.
The company also recently inaugurated its factories in Okpella, Edo State and Itori, Ogun State. According to Dangote Group Executive Director, Strategy, Projects and Portfolio Management, Devakumar Edwin, the Okpella plant will have two cement lines, which will with capacity for three mmtpa each.
On the other hand, the Itori plant, he said, will deliver approximately three mmtpa from two production lines. Both plants are expected to come on stream next year.
He said the proposed plants would add 12 mmtpa to the company’s current local output of 31.25mmtpa, raising its total output to 41.25mmtpa.
Explained that the company’s expansion drive, Edwin said it was targeted at reducing transportation and production costs, adding that it would on the long run bring down price and more employment opportunities for youths in the host communities.
Other outlets of Dangote Cement are: Lagos Cement Terminal, Port Harcourt Cement Terminal, Onne cement terminal, Aliko Inland Cement Terminal and Continental Cement Terminal. The terminals have combined capacity of nine mtpa.
On account of its local investments in Nigeria, Dangote Cement is said to control about 65 per cent of the market and over 30 per cent of the Nigerian Stock Exchange (NSE).
According to Dangote, the group’s cement production has surpassed Nigeria’s average total consumption of 20 million metric tonnes.
The Nation learnt that Dangote’s strategy for Africa is to achieve a total capacity of 75 MMTPA by 2019. Officials of the company, who spoke in Congo, said that this will make the company a global force to reckon with in cement production.
They hinged their optimism on the fact that the company has unique footprints in cement production across Africa.
Experts have traced the rising demand for the commodity in Africa to massive infrastructural developments in many countries.
