Displaying items by tag: Angola

Angola: The Angolan government has banned the importation of cement as of 1 January 2015, saying that there is adequate local production to meet national demand.

"Due to the investments made by various companies, the installed cement production capacity in Angola is 8Mt/yr. Demand is around 6.5Mt/yr," said Minister Waldemar Alexandre Pires. He added that the ban was imposed after consultation with the country's Cement Sector Commission, coordinated by the Ministry of Construction and the Ministries of Trade, Industry and the Economy.

The Angola cement market has enjoyed four years of double-digit growth on the back of the country's economic recovery. This follows the end of a 30-year civil war in 2002. The short-term outlook is positive, with continued market growth and capacity building, encouraging more players to venture into the burgeoning market. The majority of domestic cement consumption is located in the more densely populated western provinces. So far the government claims to have spent over US$1bn on reconstruction since the end of the war.

A resumption of construction activities in and around the capital of Luanda, where the government has pushed ahead with a range of new construction projects including a number of much-needed housing schemes for the city's expanding population, has been the main drivers of the cement consumption in the southern African nation.

Angola made similar noises to Nigeria this week when one of its government ministers declared that the country was self-sufficient in terms of cement production. The comments came from Industry minister Bernarda Martins at a visit by the Angolan president to the China International Fund Luanda Cement plant. Martins' words echoed those made by Joseph Makoju, Chairman of the Cement Manufacturing Association of Nigeria, who declared that his country was making more cement than it consumed back in 2012.

Claims of self-sufficiency are all about context. A major or fast growing economy such as Nigeria declaring self-sufficiency in cement could suggest a potential paradigm shift. A smaller economy might simply have risen from a low production base to a slightly higher one with little consequence. So what does this mean for Angola?

The southern African country has a population far smaller than Nigeria at 19 million. Yet, its gross domestic product (GDP) per capita, in purchasing power parity terms, was estimated to be US$6484 in 2014 by the International Monetary Fund, a figure slightly higher than Nigeria's. In nominal terms its GDP was the fifth biggest in Africa in 2013.

Global Cement Directory 2015 research (to be published in late 2014) gives Angola's four integrated cement plants with a total cement production capacity of just under 6Mt/yr. The plant the politicians have just visited has reportedly just increased its clinker capacity to 3.6Mt/yr and another 0.6Mt/yr capacity is planned to join the market when an InterCement plant expands in 2017. Together this places the country's production at around 8Mt/yr. Domestic cement demand was placed at 6.5Mt/yr in early 2014 giving the country a cement consumption of just under 350kg/capita.

Transnational African bank Ecobank declared than Angola was becoming Central Africa's cement production hub in a commodities report in July 2014. Out of the sub-Saharan countries it has become the fourth largest producer after Nigeria, South Africa and Ethiopia and the third largest consumer after Nigeria and South Africa. Angola too has restricted cement imports, like Nigeria. In 2014 the Ministry of the Economy, Industry, Commerce and Construction implemented a stoppage on imports in a phased manner under the auspices of its local cement association, the Association of Industrial Cement of Angola.

Where Angola is different to Nigeria is in the composition of the companies that produce its cement. There is no large local presence to rival Nigeria's Dangote. The former colonial links are there with a plant operated by Brazil's InterCement, who inheritied it from Portuguese company Cimpor. Of the rest, Chinese and South Korean investors figure prominently.

Finally, it is also worth noting that Angola has none of the main sub-Saharan players present including Dangote, PPC or Lafarge Africa. Roughly half-way between the African cement powerhouses of Nigeria and South Africa and with a handy coastline, Angola deserves further attention.

Angola: Cement production in Angola has reached 8Mt/yr, which was slightly more than the amount consumed, making Angola self-sufficient in terms of cement.

The China International Fund Ltd (CIF) plant is the country's newest cement facility. Production from the 4Mt/yr capacity cement plant enabled Angola to cease cement imports. The plant has two 5000t/day production lines, 145MW of power production capacity and three wind turbines.

Angola: The Nova Cimangola cement plant will get US$116m from the Angolan government to boost its cement production capacity, as per a presidential decree. The funds will be transferred by the Finance Ministry and will ensure a greater cement supply to the Angolan market and reduce cement prices.

The presidential decree described the importance of cement in the process of repairing and building manufacturing and social infrastructure in Angola, as well as for execution of house building programmes. The shareholders of Nova Cimangola are Ciminvest (49%), the Angolan State (40%) and the state bank Banco Angolano de Investimentos (10%). The remaining 1% is in the hands of individual shareholders.