East Africa’s cement sector has remained resilient in recent years, despite oversupply and power shortages. ICR reviews the main east African markets as the battle to increase market shares intensifies and modernisation is further challenged by new entrants taking on the established players.
Growth in cement consumption continues to stimulate the east African markets. In 2017 Dyer & Blair Investment Bank (DBIB) forecast a three-year CAGR in cement consumption per capita of 8.1 per cent to 96.7kg in 2018, on the back of a CAGR of 8.7 per cent in cumulative regional cement consumption to 14.9Mt in 2018. However, some producers are feeling the cost of expanding capacities during a period of increased competition and regional grinding capacity had already risen to 21.1Mta in 2016, according to DBIB. Utilisation rates are expected to come under pressure along with price cuts in 2018 as producers tighten their belts.
