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Cement Industry in Sudan-30.05.2009

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Cement Industry in Sudan-30.05.2009

  1. 2. <ul><li>Sudan is the largest country in Africa. </li></ul><ul><li>The total area is 2.508.810 km 2 </li></ul><ul><li>The population is about 38.000.000 * </li></ul><ul><li>Khartoum is the Capital of the country with an estimated population of 6.500.000* </li></ul><ul><li>The population growth rate is about 2,5%* between 2003 & 2008 . </li></ul><ul><li>* Central Bureau of Statistics </li></ul>
  2. 3. <ul><li>Sudan has rich natural resources including petroleum, iron ore, copper, silver and gold etc… </li></ul><ul><li>According to Oil and Gas Journal ( OGJ ), Sudan contained proven oil reserves of five billion barrels as of January 2007 . </li></ul>
  3. 4. <ul><li>The Sudanese Economy has been improving in recent years and the macroeconomic indicators supports this improvement. </li></ul><ul><li>Today, Sudan has become the largest destination of Foreign Direct Investments (FDI) in Sub-Saharan Africa. </li></ul>* IMF Country Study 9,000 7,518 7 , 105 5 , 946 3 , 586 2 , 536 Imports (million $) 565 505 364 287 288 262 Oil Production (000’s of Barrel/day) 7,567 8,0 1,182 46,7 2007 55,9 3 7 , 4 27, 9 21, 7 17, 8 GDP (Billion $) 9,440 5,813 4 , 8 78 3 , 77 8 2 , 5 77 Exports (million $) 6,5 7,2 8,5 8,4 7,7 Inflation (CPI, Ave., %) 1,382 970 753 597 506 GNP per capita ($) 20 08 2006 2005 2004 2003
  4. 5. <ul><li>Sudan is undergoing great social and economic transformations </li></ul><ul><li>These transformations need a lot of investments in construction and infrastructure. </li></ul><ul><li>Basic raw materials and skilled manpower is available in Sudan. </li></ul><ul><li>The building materials industry </li></ul><ul><ul><li>provides only limited quantities of the necessary products </li></ul></ul><ul><ul><li>prices are very high </li></ul></ul><ul><ul><li>still unable to cover local market demand. </li></ul></ul><ul><li>For all these reasons the investment in cement and building materials industry seems promising for the future. </li></ul>
  5. 6. Cement Demand Drivers in SUDAN… <ul><li>Fast increasing population </li></ul><ul><ul><li>According to Central Bureau of Statistics, the population will reach 43 Million in 2013 and 48 Million in 2018 </li></ul></ul><ul><li>As result of construction boom that is expected to continue in the short to medium term; fast expanding infrastructure development in the country. </li></ul><ul><li>Reconstruction in South Sudan. </li></ul><ul><li>Higher petroleum production & sales will increase income & buying power of the people. </li></ul><ul><li>Quality of cement from Egypt, Saudi Arabia, Indian sub-continent to Sudan is often not up-to-the-mark means the country needs quality. </li></ul>
  6. 7. Cement Industry in SUDAN… <ul><li>We cooperated with a well-known Indian Engineering Consulting Firm called Development Consultants Private Limited (DCPL) to prepare; </li></ul><ul><ul><li>A Market Report of Cement in Sudan </li></ul></ul><ul><ul><li>A Techno-Economic Feasibility Report (TEFR) </li></ul></ul><ul><li>They have previous experience in Sudan as a result of their involvement as technical consultants in existing factories. </li></ul><ul><li>5 consultants from DCPL spent almost 1 month in Sudan for necessary research and prepared above mentioned reports. </li></ul><ul><li>Market Data collected from Sudan Customs Police, factory records and industry experts. </li></ul>
  7. 8. Cement Industry in SUDAN… <ul><li>At present 85% of cement consumed in Sudan is imported. </li></ul><ul><li>The remaining 15% is catered by local production from 2 existing factories; </li></ul><ul><ul><li>ATBARA (In the River Nile Province) </li></ul></ul><ul><ul><li>RABAK (In the White Nile Province) </li></ul></ul><ul><ul><li>These factories have been using inadequate technology, working at a low capacity and facing operational problems. </li></ul></ul><ul><li>AL SALAAM Cement </li></ul><ul><ul><li>A new factory with an installed capacity of 600.000 MT/year. </li></ul></ul><ul><ul><li>Saudi and Sudanese Investors </li></ul></ul><ul><ul><li>Current Status: Just began the production </li></ul></ul>
  8. 9. Cement Industry in SUDAN… <ul><li>Based on the collected data </li></ul><ul><ul><li>The per capita cement consumption in Sudan is about 65 kgs. It is among the lowest in the so-called MENA countries. </li></ul></ul><ul><ul><li>The consumption of cement increased at the rate about 7 % between the years 2003 & 2007 </li></ul></ul><ul><ul><li>The cement consumption of 2007 is about 27% over the 2006, this could be the case for upcoming years due to large infrastructural investments. </li></ul></ul><ul><ul><li>The current retail price is around $250 in Khartoum market and its over $400 in South Sudan market </li></ul></ul>
  9. 10. Cement Industry in SUDAN… 2.324.761 2.000.000 324.761 94.761 230.000 2007 1.832.878 1.630.873 202.005 88.005 114.000 2006 1.998.530 1.667.447 331.083 91.083 240.000 2005 1.437.496 1.130.416 307.080 67.080 240.000 2004 1.871.015 1.599.051 271.964 71.964 200.000 2003 (MT) (MT) (MT) Rabak Atbara Cement Demand Import Domestic Supply Domestic Supply Year
  10. 11. Cement Industry in SUDAN… Thinking conservatively, for the demand projection 15% growth rate considered. 14.303.761 2020 12.438.053 2019 10.815.698 2018 9.404.955 2017 8.178.222 2016 7.111.497 2015 6.183.910 2014 5.377.313 2013 4.675.925 2012 4.066.022 2011 3.535.671 2010 3.074.496 2009 2.673.475 2008 Projected Demand Year
  11. 12. Cement in MENA Countries… 65 SUDAN 155 Yemen 304 Syria 308 Morocco 362 Algeria 369 Egypt 450 Oman 491 Jordan 515 Tunisia 663 Lebanon 1186 Bahrain 1785 Emirates 1800 Qatar Per Capita Consumption (Kg) Country
  12. 13. Cement Industry in SUDAN… <ul><li>Problems with the Data </li></ul><ul><ul><li>To reach reliable statistical data is not very easy in Sudan. </li></ul></ul><ul><ul><li>Sudan Customs Police does not proper Information System infrastructure that consolidates the figures. There might be problems in import figures. </li></ul></ul><ul><ul><li>The collected data represents the Khartoum (Northern) market. The data about Southern market is not available due to lack of customs operations in Southern borders. </li></ul></ul><ul><ul><li>When the market in South considered the demand is much higher. </li></ul></ul>
  13. 14. Cement Industry in SUDAN… <ul><li>According to this study, the per capita cement consumption is about 65kg. </li></ul><ul><li>Some other studies and experts predict that the per capita consumption will be around 100 kg very soon. </li></ul><ul><li>When 38.000.000 population considered, the actual market demand might be between 3,5 - 4 Million tons very soon. </li></ul><ul><li>These analysis and predictions indicates that there is a good opportunity for a 1 Million ton capacity cement project and with the price levels in Sudan, such investment seems very promising and feasible. </li></ul>
  14. 15. <ul><li>THANK YOU </li></ul>

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