Cameroon/Dangote Cement Foresees Short-Term Growth in Cameroon’s Cement Market Amid Infrastructure Projects
Dangote Cement subsidiary in Cameroon is anticipating a surge in the local cement market in the short term, driven by ongoing infrastructure projects. Over the first nine months of 2023, the Cameroonian subsidiary of the Nigerian Dangote Cement Group achieved sales of one million tons of cement, marking a 1.6% year-on-year increase. This performance has secured the company an estimated market shares of 32.2% in a total market of 3.1 million tons.
Established in 2015 with a capacity of 1.5 million tons, the cement plant on the banks of the Wouri River is well-positioned to capitalize on the expected upturn in Cameroon’s cement market.
Ongoing infrastructure projects, including highway construction between Douala and Yaoundé, the development of new roads and bridges across the country, and increased regional development initiatives, are factors expected to boost cement demand in the short term, as outlined in the company’s activity report as of September 2023.
Entering the Cameroonian market in 2015, Dangote Cement successfully claimed the leading market position, ending the 48-year monopoly held by Cameroon Cement Plants (Cimencam), a Lafarge Holcim Maroc Afrique (LHMA) subsidiary.
Although Dangote Cement initially announced plans in 2015 to build a second plant in Yaoundé to double production capacity to 3 million tons, this project appears to be on hold within the Nigerian group after seven years.
Meanwhile, direct competitor Cimencam continues to strengthen its capacities. Following the inauguration of a new 500,000-ton plant in Nomayos in 2019, LHMA’s subsidiary announces the start of production for a new 500,000-ton line at its Figuil plant, scheduled for January 2024.
This will bring Cimencam’s total capacities to 2.3 million tons.
The competitive dynamics and developments in Cameroon’s cement market remain crucial factors to monitor as Dangote Cement seeks to capitalize on future opportunities in this rapidly growing sector.
Emilie FOTSO
