The East Africa cement market reached a volume of 14.4 Million Tons in 2017. The market is further projected to reach a volume of 22.2 Million Tons by 2023, at a CAGR of 7.5% during 2018-2023. Cement plays a very crucial role in meeting the infrastructural requirements of a region and represents a key factor for economic growth. In East Africa, the cement industry experienced a sustained growth on account of the booming construction activities in the region. However, the growth has declined since 2015 due to increased power tariffs, currency devaluations and high interest rates which led to a slowdown in the region’s construction activities. Moreover, imports from Asian countries resulted in an oversupply of cement within the region which further restrained the market growth. Despite all these challenges, the cement industry is expected to witness an upward trend owing to support from government initiatives, growing construction and housing projects, and investments by new entrants.
East Africa Cement Market Drivers:
- With the fast-growing population and rising disposable incomes, there exist vast opportunities in the construction of residential and commercial high-rise building structures in East African countries which will translate into a healthy cement demand in the region.
- The rising FDI in East Africa is contributing to the growth of infrastructure industry in the region. For instance, the World Bank is financing the road development programme in Ethiopia so as to improve the country’s highway network. Since this will require a large amount of cement for strengthening the base of the roads, it is projected to boost the demand for cement in the country.
- There has been a robust growth in the cement industry due to investments made by the regional governments in public infrastructure. In Uganda, for example, the development of Entebbe International Airport, redesigning of Malaba-Kampala railway route into a standard gauge line, and the upcoming construction of Bukasa port are supporting the cement industry.
- Factors such as increasing urbanisation and continuous private and public construction works have created a huge demand for cement in East Africa. For instance, Rwanda is investing in the development of roads, rail and water transport facilities which will result in a significant demand for cement in the region.
Breakup by Type:
On the basis of type, the market has been segmented into Portland and blended cement. Amongst these, Portland represents the most popular type of cement as it is used in a variety of applications including concrete projects, grout fillings, stucco decorations, etc.
Breakup by Application:
Based on the application, the residential sector represents the largest application segment owing to the rising middle-class in the region. The residential sector is followed by the commercial and infrastructure sectors.
On a geographical front, Ethiopia enjoys the leading position in the East Africa cement market on account of the thriving construction and infrastructure activities in the country. Other major regions include Kenya, Tanzania, Uganda, Rwanda and Burundi.
The market is highly fragmented with the presence of numerous small and large manufacturers who compete in terms of prices and quality. Some of the leading players operating in the market are:
- Bamburi Cement Limited
- ARM Cement Plc
- Dangote Cement Plc
- Mombasa Cement Limited
This report provides a deep insight into the East Africa cement market covering all its essential aspects. This ranges from macro overview of the market to micro details of the industry performance, recent trends, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the cement market in any manner.
Key Questions Answered in This Report:
- How has the East Africa cement market performed so far and how will it perform in the coming years?
- What are the key regions in the East Africa cement market?
- Which are the popular product types in the East Africa cement market?
- What are the key application segments in the East Africa cement market?
- What are the price trends of cement?
- What are the various stages in the value chain of the East Africa cement market?
- What are the key driving factors and challenges in the East Africa cement market?
- What is the import and export scenario in the East Africa cement market?
- What is the structure of the East Africa cement market and who are the key players?
- What is the degree of competition in the East Africa cement market?