South Africa’s Sephaku Cement (Dangote Cement) is expected to pay between ZAR35m-40m (US$2.4-2.8m) each year following the introduction of a new carbon tax on 1 June.

"The associate will apply the tax on its products based on the proportion of clinker per ton, which translates to between 1.5 per cent and 2.5 per cent price increases on lower-strength and high-strength cement, respectively," said Sephaku Holdings, 36 per cent owner of Sephaku Cement, in a statement.

The company will increase prices this month by 4-6 per cent as a result of the carbon tax and standard biannual rises.

Financial results for the FY18-19
Elsewhere, the company announced that its net profit for the year ending 31 March fell 18.9 per cent YoY to ZAR46.9m from ZAR57.8m. However, a ZAR81.7m tax credit from an energy efficiency allowance saw its final net profit reach ZAR128.7m. Profit after tax saw a minor decline to ZAR44m from ZAR44.1m.

"Our outlook for the next 12 to 24 months remains negative, anticipating anaemic growth, unless the newly elected government urgently provides impetus through pro-infrastructure investment policies," said Dr Lelau Mohuba, CEO of Sephaku Holdings.