This document provides information on the cement industry in various regions of Africa and the subcontinent. It discusses production capacity, consumption, exports and imports of key countries in East Africa, Southern Africa, West Africa and Central Africa. It identifies Tanzania and Mozambique as two important markets for cement exports from the subcontinent, noting that Tanzania's consumption exceeded its production while Mozambique imported cement. The document also outlines reasons why Africa is an important market globally due to its natural resources, emerging economy potential and infrastructure development opportunities.
3. Cement Production & Consumption in SubCement Production & Consumption in Sub--ContinentContinentCement Production & Consumption in SubCement Production & Consumption in Sub--ContinentContinent
Sr. # Country Production
Capacity
Production Surplus
(Shortage)
Capacity
Local
Consumption
Export
(Import)
1 Bangladesh 28.00 20.00 8.00 18.00 0.38(8.71)
2 Pakistan 44.77 33.60 11.17 25.30 8.30
3 Maldives 0.00 0.00 0 0.15 (0.15)
4 India 336.00 272.00 64.00 265.00 1.76 (0.62)
5 Nepal 6.00 2.70 3.30 3.40 (2.72)
6 Sri Lanka 3.40 2.43 0.97 6.63 (4.20)
7 Bhutan 1.00 0.47 0.53 0.40 0.15(0.10)
Total 419.17 331.20 87.97 318.73
Source : Global Cement Report 3
4. Salient Features of Indian Cement IndustrySalient Features of Indian Cement IndustrySalient Features of Indian Cement IndustrySalient Features of Indian Cement Industry
• Approx 265 million tons local consumption
in 2013.in 2013.
• Production base consists of over 140
integrated units and 45 grinding plants.
• Almost 191 Kg per capita consumption.
• High infrastructure requirements offer scope
for growth.for growth.
• Exports to Sri Lanka, Nepal, Maldives,
Bhutan and Africa.
4
5. Salient Features of Pakistan Cement IndustrySalient Features of Pakistan Cement IndustrySalient Features of Pakistan Cement IndustrySalient Features of Pakistan Cement Industry
• Currently 24 cement factories.
• Cement production capacity of 44.77 Mtpa.• Cement production capacity of 44.77 Mtpa.
• Total local consumption for CY 2013 were
25.30 million Tons.
• Total export for CY 2013 were 8.29 million
tons.
• With a surplus capacity of 11.17 Mtpa,
Capacity utilization for FY 2013 was 75.05%Capacity utilization for FY 2013 was 75.05%
• Lucky Cement is the largest player with an
annual production capacity of 7.75 mtpa.
Source : APCMA 5
6. Pakistan Cement Industry over the yearsPakistan Cement Industry over the yearsPakistan Cement Industry over the yearsPakistan Cement Industry over the years
Year
Capacity
(million tons)
Consumption Utilization
2005-06 20.96 18.55 88.50 %
42.41
45.47
42.50
44.77 44.77 44.77
45
50
2005-06 20.96 18.55 88.50 %
2006-07 30.62 24.26 79.23 %
2007-08 37.80 30.29 80.13 %
2008-09 42.41 31.31 73.82 %
2009-10 45.47 34.22 75.26 %
2010-11 42.50 31.43 73.95 %
2011-12 44.77 32.52 72.63 %
17.05
21.03 22.58
20.33
23.57 22
23.95 25.06 25.55
1.50
3.23
7.71 10.98
10.65
9.43
8.57
8.37 8.02
20.96
30.62
37.80
5
10
15
20
25
30
35
40
Quantity(MillionTons)
2011-12 44.77 32.52 72.63 %
2012-13 44.77 33.43 74.67%
2013-14 44.77 33.57 74.98%
0
5
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Local Export Capacity
Source : Global Cement Report 6
7. SWOT for SubSWOT for Sub--ContinentContinentSWOT for SubSWOT for Sub--ContinentContinent
•Substantial surplus available with
India and Pakistan
•Strategic locations (exports to Sub
•High energy costs
•Higher freight cost for West Africa
•Surplus capacities relatively away
from sea•Strategic locations (exports to Sub
Sahara African market)
•Low cost due to
•Alternate Fuels
•WHR & Operational Efficiencies
from sea
•Dependent on imported coal
•Depleting reserve for Gypsum
•Emerging markets e.g.
• Sub Saharan Africa
• Increasing production capacity
of Middle East & neighboring
countries.• Reconstruction in Afghanistan
•Potential Markets e.g.
• Saudi Arabia
• Qatar
countries.
•Increasing trend of export from
Persian Gulf.
•Increasing exports of South East
Asian countries.
Source : Global Cement Report 7
8. World Top Exporters of Cement for the Year 2013World Top Exporters of Cement for the Year 2013World Top Exporters of Cement for the Year 2013World Top Exporters of Cement for the Year 2013
Iran 14.00 Million Tons Approx.
Afghanistan
Iraq
CIS countries
Afghanistan
Iraq
CIS countries
China 10.79 Million Tons
Turkey 9.05 Million Tons
CIS countriesCIS countries
Angola 2.24 Million tons
Mongolia 1.53 Million tons
Congo 0.98 Million tons
Angola 2.24 Million tons
Mongolia 1.53 Million tons
Congo 0.98 Million tons
Libya 1.77 Million tons
Iraq 1.47 Million tons
Russian Fed. 1.09 Million tons
Libya 1.77 Million tons
Iraq 1.47 Million tons
Russian Fed. 1.09 Million tons
Pakistan 8.23 Million Tons
Source : International Trade Centre
Afghanistan 4.58 Million tons
South Africa 0.93 Million tons
Sri Lanka 0.75 Million tons
Afghanistan 4.58 Million tons
South Africa 0.93 Million tons
Sri Lanka 0.75 Million tons
8
9. World Top Importers of Cement for the Year 2013World Top Importers of Cement for the Year 2013World Top Importers of Cement for the Year 2013World Top Importers of Cement for the Year 2013
Singapore 5.79 Million Tons Japan 3.12 Million Tons
Taipei 1.10 Million Tons
China 0.70 Million Tons
Japan 3.12 Million Tons
Taipei 1.10 Million Tons
China 0.70 Million Tons
USA 5.53 Million Tons
Libya 4.61 Million Tons
Canada 2.55 Million tons
Korea 1.24 Million tons
Greece 0.69 Million tons
Canada 2.55 Million tons
Korea 1.24 Million tons
Greece 0.69 Million tons
Turkey 1.98 Million tons
Egypt 0.89 Million tons
Greece 0.60 Million tons
Turkey 1.98 Million tons
Egypt 0.89 Million tons
Greece 0.60 Million tons
Afghanistan 4.59 Million Tons
Source : International Trade Centre
Pakistan 4.59 Million tonsPakistan 4.59 Million tons
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10. Salient Features of SubSalient Features of Sub--Saharan African Cement IndustrySaharan African Cement IndustrySalient Features of SubSalient Features of Sub--Saharan African Cement IndustrySaharan African Cement Industry
• Africa is broadly divided into Sahara and Sub
Saharan Africa.
•There are a total of 46 countries in SSA.•There are a total of 46 countries in SSA.
•In Year ending 2013:
• Production capacity 125.00 Mtpa
• Actual production 87.70 Mtpa
• Consumption 94.00 Mtpa
• Exports 8.30 Mtpa
• Imports 18.80 Mtpa
(Approximate Quantities)(Approximate Quantities)
•Around 134 factories across SSA
•Approximate range of market prices:
$100~$300
Source : Global Cement Report & ITC 10
11. East Africa is main market for SubEast Africa is main market for Sub--ContinentContinentEast Africa is main market for SubEast Africa is main market for Sub--ContinentContinent
• Main markets in East Africa are Kenya, Tanzania,
Mozambique & Madagascar
• In Year ending 2013:• In Year ending 2013:
• Production capacity 45.00 Mtpa
• Actual production 31.00 Mtpa
• Consumption 30.00 Mtpa
• Exports 4.90 Mtpa
• Imports 5.40 Mtpa
(Approximate Quantities)
•Main Exporter Sudan & Ethiopia
•Indian Ocean Islands like Madagascar, Mauritius,•Indian Ocean Islands like Madagascar, Mauritius,
Comoros and Seychelles primarily rely on imports as
don’t have own kilns
•Per Capita Consumption is 78 kg i.e. among the lowest in
the world
Source : Global Cement Report & ITC 11
12. Production, Consumption and Imports of East AfricaProduction, Consumption and Imports of East AfricaProduction, Consumption and Imports of East AfricaProduction, Consumption and Imports of East Africa
Production Consumption Imports
• Ethiopia 8.45 Mill tons
• Sudan 6.00 Mill Tons
• Kenya 4.85 Mill Tons
• Tanzania 3.7 Mill Tons
• Uganda 2.15 Mill Tons
• Ethiopia 7.40 Mill tons
• Kenya 4.12 Mill Tons
• Sudan 4.11 Mill Tons
• Tanzania 4.00 Mill Tons
• Uganda 1.95 Mill Tons
• Tanzania 0.79 Mill tons
• Mauritius 0.70 Mill Tons
• Mozambique 0.67 Mill Tons
• Somalia 0.47 Mill Tons
• Madagascar 0.42 Mill Tons
Source : Global Cement Report & ITC
• Uganda 2.15 Mill Tons • Uganda 1.95 Mill Tons • Madagascar 0.42 Mill Tons
12
13. Southern Africa has the highest per capita consumption inSouthern Africa has the highest per capita consumption in
SSASSA
Southern Africa has the highest per capita consumption inSouthern Africa has the highest per capita consumption in
SSASSA
• Botswana, Lesotho, Namibia, South Africa and
Swaziland are the five countries that UN
classifies as Southern Africa
• In Year ending 2013:
• Production capacity 19.30 Mtpa
• Actual production 13.00 Mtpa
• Consumption 13.30 Mtpa
• Exports 1.00 Mtpa
• Imports 2.20 Mtpa
(Approximate Quantities)
•South Africa with per capita consumption of 220
kg is highest among the SSA regionkg is highest among the SSA region
•South Africa with an installed production
capacity of 18.4 mtpa is a leading cement
producer in Africa. It also exports to nearby
markets.
Source : Global Cement Report & ITC 13
14. Production, Consumption and Imports of SouthernProduction, Consumption and Imports of Southern
AfricaAfrica
Production, Consumption and Imports of SouthernProduction, Consumption and Imports of Southern
AfricaAfrica
Production Consumption Imports
• South Africa 12.33 Mill tons
• Namibia 0.70 Mill Tons
• Botswana 0.03 Mill Tons
• South Africa 11.85 Mill tons
• Botswana 0.65 Mill Tons
• Namibia 0.45 Mill Tons
• Lesotho 0.22 Mill Tons
• Swaziland 0.14 Mill Tons
• South Africa 1.10 Mill tons
• Botswana 0.63 Mill Tons
• Lesotho 0.22 Mill Tons
• Swaziland 0.14 Mill Tons
• Namibia 0.11 Mill Tons• Swaziland 0.14 Mill Tons • Namibia 0.11 Mill Tons
Source : Global Cement Report & ITC 14
15. West Africa offers the most opportunitiesWest Africa offers the most opportunitiesWest Africa offers the most opportunitiesWest Africa offers the most opportunities
• Nigeria, Senegal, Ghana, Benin and Togo are
the top 5 cement producers in West Africa
• In Year ending 2013:• In Year ending 2013:
• Production capacity 51.70 Mtpa
• Actual production 36.30 Mtpa
• Consumption 38.30 Mtpa
• Exports 2.40 Mtpa
• Imports 5.20 Mtpa
(Approximate Quantities)
•Nigeria and Mali are largest importer of
cement in West Africa with 1.2 mtpa ofcement in West Africa with 1.2 mtpa of
imports.
•While Ghana is the leading importer of
cement & clinker with 4.0 mtpa of imports.
Source : Global Cement Report & ITC 15
16. Production, Consumption and Imports of West AfricaProduction, Consumption and Imports of West AfricaProduction, Consumption and Imports of West AfricaProduction, Consumption and Imports of West Africa
Production Consumption Imports
• Nigeria 19.80 Mill tons
• Senegal 5.28 Mill tons
• Ghana 4.86 Mill tons
• Benin 1.63 Mill tons
• Togo 1.35 Mill tons
• Nigeria 21.00 Mill tons
• Ghana 5.38 Mill tons
• Senegal 2.84 Mill tons
• Benin 1.74 Mill tons
• Mali 1.70 Mill tons
• Mali 1.20 Mill tons
• Nigeria 1.20 Mill tons
• Ghana 0.97 Mill tons
• Guinea 0.40 Mill tons
• Niger 0.35 Mill tons• Togo 1.35 Mill tons • Mali 1.70 Mill tons • Niger 0.35 Mill tons
Source : Global Cement Report & ITC 16
17. Central AfricaCentral AfricaCentral AfricaCentral Africa
• Angola, Cameroon, Chad, DRC, Congo –
Republic, Equatorial Guinea and Gabon are in the
Middle / Central Africa
• In Year ending 2013:
• Production capacity 9.00 Mtpa
• Actual production 7.40 Mtpa
• Consumption 12.40 Mtpa
• Exports 0.00 Mtpa
• Imports 6.00 Mtpa
(Approximate Quantities)
•As a region, Central Africa is the largest net•As a region, Central Africa is the largest net
importer. Every single country is short of cement.
• Per capita consumption of 96 kg in Central
Africa is quite low as compared to world’s 513 kg
Source : Global Cement Report & ITC 17
18. Production, Consumption and Imports of Central AfricaProduction, Consumption and Imports of Central AfricaProduction, Consumption and Imports of Central AfricaProduction, Consumption and Imports of Central Africa
Production Consumption Imports
• Angola 4.56 Mill tons
• Cameroon 1.19 Mill tons
• DR Congo 1.18 Mill tons
• Gabon 0.24 Mill tons
• Congo 0.15 Mill tons
• Angola 5.56 Mill tons
• DR Congo 2.19 Mill tons
• Cameroon 1.79 Mill tons
• Congo 1.25 Mill tons
• Eqt. Guinea 0.72 Mill tons
• Angola 2.30 Mill tons
• Congo Rep. 1.10 Mill tons
• Eqt Guinea 0.72 Mill tons
• Gabon 0.64 Mill tons
• Cameroon 0.60 Mill tons• Congo 0.15 Mill tons • Eqt. Guinea 0.72 Mill tons • Cameroon 0.60 Mill tons
Source : Global Cement Report & ITC 18
19. Why Africa matters in the Global EconomyWhy Africa matters in the Global EconomyWhy Africa matters in the Global EconomyWhy Africa matters in the Global Economy
Africa as the ‘Last Frontier’
•Africa as new territory
Importance of Africa matters in the World Economy
•Rich with minerals and raw materials
•Can be an emerging economic market
Comparison of infrastructure globally with AfricaComparison of infrastructure globally with Africa
•Untapped market with a lot of potential
19
20. Tanzania:
- Production was 3.70 Mt
- Consumption was 4.00 Mt
Key Markets in SSA for SubcontinentKey Markets in SSA for SubcontinentKey Markets in SSA for SubcontinentKey Markets in SSA for Subcontinent
Mozambique:
- Production was 1.10 Mt
- Consumption was 1.69 Mt
- Exports were 0 Mt
- Consumption was 4.00 Mt
- Exports were 0.45 Mt
- Imports were 0.79 Mt
- Construction sector forecasted to
expand by 9.8% in 2013.
-Increasing power generation in 5 year
development plan.
- Exports were 0 Mt
- Imports were 0.67 Mt
- GDP growth boosted by coal industry
to 7.55%
- US$ 725m bridge being constructed
- New Nacala airport
- Investment in roads
South Africa:
- Production was 12.33 Mt
-Consumption was 11.85 Mt
-Exports were 0.99 Mt
Indian Ocean Island:
-Madagascar
-Mauritius
-Seychelles-Exports were 0.99 Mt
-Imports were 1.09 Mt
-Gov. announced US$ 462 bn package
of infrastructure spending
-79 new schools in Gauteng
-Construction of Hospitals and Durban
harbor .
-Seychelles
-Comoros
Production was 0.25 Mt
Consumption was 1.51 Mt
Exports were 0 Mt
Imports were 1.35 Mt
Source : Global Cement Report & ITC 20
21. Lucky Cement’s Investment in DRCLucky Cement’s Investment in DRCLucky Cement’s Investment in DRCLucky Cement’s Investment in DRC
• Project named M/s Nyamba Ya Akiba.
•DCR currently consumes about 24 kg of
cement per capita per year.cement per capita per year.
•Access to Regional Market of Sub-Saharan
Africa
•Easy Access to Raw Material and Cheap
Power including Abundant and High Quality
Limestone Reserves
Project LocationProject LocationProject LocationProject Location
Strategic
location near
Matadi Port
Between
Kinshasa and
Matadi in Bas
Congo Province
250 Kilometers
away from
Kinshasa
Project LocationProject LocationProject LocationProject Location
21
22. Project Description of Lucky Cement in DRCProject Description of Lucky Cement in DRCProject Description of Lucky Cement in DRCProject Description of Lucky Cement in DRC
Capacity Technology Area Employees
Power
Supply
Capacity
• 1.18 million tons
per annum
cement
production
facility
Technology
• European
technology from
one of the
leading plant and
machinery
supplier
• Most efficient ,
latest technology
and highly
environment
friendly
Area
• 250 acres of land
for cement plant
• 7,057 acres for
limestone and
clay mining
Employees
• 400 employees
will be employed
for the project
• Employees from
the local
population will
be hired and
trained as per
international
standards
Supply
• Hydel based
power supply
shall be available
through Kwilu
substation which
is only 6km away
from project
friendly
22