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Infos Business of Thursday, 22 October 2015

Source: cameroon-info.net

Cameroon to increase cement production

Cement distribution Cement distribution

During a meeting with the Trade Minister Luc Magloire Atangana Mbarga, the construction sector stakeholders have informed that the increase in cement supply can cover the end of 2015.

Given the difficulties that the sector faces in construction these days, there is still doubt on the production capacity of 950,000 tons of cement for the coming months.

Cement production now knows three names in Cameroon: Cameroon Dangote Cement, Cimencam and Ciment d’Afrique (CIMAF), "who are competing for the quest for market share, both in Cameroon and in the sub CEMAC-region," according to Le Quotidien de l’Economie on Wednesday, October 21, 2015.

These three companies collectively produce 3.6 million tons of cement per year. This figure is likely to go up in 2016. "Cimencam intends to increase its production by 8% estimated at over 1.3 million tons per year," sources said.

CIMAF production will rise to 380,000 tonnes by the end of the current year and Dangote meanwhile, indicated receipt of new machines to "boost" its production. This will be increased to over 1.5 million tonnes by 2016.

Moreover, despite the local market promises of satisfaction, the government still "issued authorizations for imports of foreign brands of cement to some local companies like Quifferou and Fokou to name a few," revealed credible sources. This measure was taken in order to fill the cement deficit on the Cameroon market.

Local producers are very interested in the CEMAC zone market. "It's a mistake to think that all these cement factories which are implanted in Cameroon only target the local market. They are more interested in the CEMAC market," said a source at the Ministry of Commerce.

Insecurity in Chad and the Central African Republic was raised during this consultation as a retarder to export Cameroonian products, leading to "accumulation of the offer." The cement bag in most retail outlets still costs FCFA 4960.