Africa’s cement market is experiencing a surge, fueled by rapid urbanization, expanding infrastructure projects, and rising construction activity. The boom is transforming the continent’s cement production landscape, attracting new players, including a growing number of Chinese companies.
Faced with a sluggish property market and stricter environmental regulations at home, Chinese cement manufacturers have turned their attention to Africa, where demand for building materials is soaring.
In 2023 alone, Chinese companies, led by Huaxin, invested in nine new cement projects across Africa, with five more expected to launch in 2024.
“We’ve got this enormous infrastructure deficit in Africa. We’ve got this enormous demographic story that’s continuing to play out,” said Aly-Khan Satchu, CEO of the East African Financial Portal. “The Chinese are looking at the medium term and thinking that Africa could be another China—a similar story, though not as monolithic or linear.”
With 10 cement plants and a production capacity of 18 million tons per year, Huaxin has become Sub-Saharan Africa’s second-largest cement producer. Nigerian company Dangote remains the region’s top producer, with an annual capacity of 52 million tons.
Industry experts predict that demand for cement will remain strong in key markets like Nigeria, South Africa, Kenya, and Ghana.
“Dangote understands Africa. He took a big bet, and I expect him to grow his business,” Satchu said. “This cement expansion by the Chinese is likely just the start of something much bigger. I expect other BRICS nations, such as India and possibly Brazil, to take a more aggressive stance toward Africa as well.”
However, the cement industry faces environmental challenges. Cement production is a major source of pollution, and experts warn that African governments must prioritize environmental sustainability. They call for stronger policies that balance economic growth with the need to develop local industries in a sustainable manner.