Cement Is The New Oil As Africa’s Richest Man Takes On Lafarge

China Effect

“Africa is a fast-growing region with huge construction needs supported by demographic trends and growing urbanization,” LafargeHolcim said in an e-mailed response to questions. The company “is well positioned to serve the continent’s construction needs from its existing strong supply network in cement with facilities in 15 countries” in Africa.

The speed and scale of new investments in Africa’s natural resource-based economies may falter as commodity prices fall and growth slows in China, the biggest consumer of materials from copper to iron ore. A gauge tracking 20 of the most-traded emerging-market currencies depreciated 0.7 percent on Monday to a record low, making it harder for those countries to pay for imported materials.

The market slump hasn’t changed Dangote Cement’s expansion plans, Carl Franklin, the company’s head of investor relations, said by e-mail late Monday.

“We don’t think that short term,” he said. “Africa will be building for decades.”

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