Plagued by headwinds at home, several cement makers in China – the world’s largest producer of the building material – are finding solace in Africa by acquiring existing companies and building new plants across the continent.

On 27 January, West China Cement (WCC) announced that its subsidiary WIH Cement had agreed to acquire a 91.02% equity interest in Cimenterie de Lukala SA, the largest cement manufacturer in Democratic Republic of Congo (DRC).

The deal came less than two months after Huaxin Cement, another major Chinese manufacturer, agreed to buy an 83.8% stake in Lafarge Africa, the third-largest producer in Nigeria.

Indigenous operators, including Nigeria’s Dangote Cement, which has the biggest capacity on the continent, now have growing Chinese competition to contend with at a time when mounting economic challenges such as currency depreciation and soaring energy costs have hurt company profits across the board.

Other major local players include Nigeria’s BUA Cement, South Africa’s PPC Cement, and Cimaf of Morocco with operations in more than 10 countries.

“Chinese investors see the future of Africa from a demographic standpoint,” Tajudeen Ibrahim, director of research and strategy at Lagos-based Chapel Hill Denham, tells The Africa Report. “[They see Africa] from a growth perspective, and more importantly from a development viewpoint, because we have to develop our infrastructure and cement is one of the commodities that will be required in large quantities.”

“Chinese companies are coming in big and any existing cement companies that are available to be acquired will be acquired… reaping future dividends,” says Ibrahim.

Chinese firms find footing

In China, the demand for cement has declined in recent years owing to the downturn in the country’s property market that has dampened residential and non-residential construction. Demand fell by almost 25% from 2.4 billion tonnes in 2020 to 1.8 billion tonnes in 2024, an average decline of 7% per year, according to Global Cement Magazine.

Fitch Ratings has said it expects “a continued decline in China’s cement demand in 2025, though at a more moderate pace than previous years as property and infrastructure investments are likely to remain weak”.

Huaxin has built its presence across the continent since 2020, with the acquisition of Kenya’s ARM Cement unit in Tanzania. It completed the acquisition of 75% and 100% stakes in Lafarge Zambia and Lafarge Cement Malawi, respectively, in 2021; and snapped up the South African and Mozambique assets of Brazil-based InterCement Participacoes SA in 2023.

The company now has 10 integrated cement plants in sub-Saharan Africa with a cement capacity of around 18 million metric tonnes per annum (mtpa), according to data from the Global Cement Directory 2024.

…the growing footprint of Chinese cement companies presents a competitive challenge to existing local producers and local businesses

That makes it second to Dangote Cement, which boasts a production capacity of 52 million mtpa across 10 African countries including its home market of Nigeria. BUA Cement, another Nigerian producer, aims to increase its installed capacity to 20 million mtpa from 17 million mtpa currently.

WCC has also bolstered its presence on the continent, with factories in several countries, including Mozambique, DRC, Ethiopia and Rwanda. The Lemi National Cement Factory, the largest in Ethiopia, built by a joint venture between its subsidiary West International Holding and East African Holding Company, was inaugurated last September.

In August, West International Holding began the construction of a $196m cement factory in the Buikwe district of Uganda, expected to be commissioned in July this year. The company had in January 2024 sealed a $1bn deal with Labenmon Investors (Pvt) to build a cement plant in Zimbabwe.

China National Building Materials, the largest cement producer in the Asian country, has a subsidiary in Zambia, Mpande Limestone, whose 1 million mtpa plant in Chongew Mpande Industrial Park was inaugurated in 2019.

Hengya Cement (Tanzania) Co, established by China’s Hengyuan International Engineering Group, plans to invest $530m in Tanzania, including the construction of a new dry-process clinker and cement production line with a daily output of 7,500 metric tonnes, as part of the Belt and Road Initiative (BRI), according to its website.

The BRI, a global infrastructure development strategy launched in 2013, has seen China boost its contribution to the building of roads, rail, ports, among others in Africa.

Africa home to ‘best cement market’

The United Kingdom-based On Field Investment Research, in its outlook for the period 2024-2030, said the best cement market in the world will be sub-Saharan Africa in the foreseeable future, with a projected growth of over 77% by 2030.

With China expected to be among the weakest markets, it said Chinese cement producers will continue to expand abroad in a bid to diversify and balance their portfolio. “Chinese cement producers are taking leadership in several overseas markets,” it said.

Bunmi Bailey, head of research at Lagos-based SBM Intelligence, says Africa’s growing population, rapid urbanisation, infrastructure development, and less stringent regulations on construction activities “are creating a lucrative market for Chinese manufacturers”.

She says the potential benefits for Africa include increased cement production, which could lower prices and create more employment opportunities. “However, the growing footprint of Chinese cement companies presents a competitive challenge to existing local producers and local businesses.”

Lower prices could also make Chinese companies capture a significant share of the demand and market, leaving local producers with a smaller piece of the pie, she says.

“As local cement producers struggle to compete, they may be forced to scale back operations or close shop, leading to job losses,” Bailey says.

Ibrahim, of Chapel Hill Denham, says local operators should embark on “aggressive capacity expansion” to take advantage of the demand growth in the market.

“I think the next thing that they should focus on is energy costs, ensuring that they’re able to utilise as much as possible alternative energy so that they will be cost-efficient,” he says.