Cement business: East Africa outlook

Kenya's cement business is set for substantial growth as economic activities in the region begin to pick up pace. In a recent interview with CNBC Africa, the CEO of South African Portland cement company, Oliver Kirubai, discussed the positive outlook for the cement industry in East Africa. Kirubai highlighted the government's focus on affordable housing and infrastructure projects, such as roads, dams, and housing developments, as key drivers for the industry's growth prospects. The company has recently released its annual results, showing significant improvements and a move towards profitability. Kirubai mentioned that the company had upgraded its facility, boosting capacity by 20% and operating at a utilization factor of 75%, with plans to further enhance operational efficiency. The CEO anticipates a significant increase in demand for cement, citing a 12% increase in sales volumes compared to the previous year. He projected double-digit growth in cement demand, considering Kenya's lower cement consumption per capita compared to developed economies. Kirubai also addressed the company's plans to liquidate assets, including land, and expressed optimism about partnering with the government and private sector in affordable housing initiatives. Regarding the entry of billionaire Aliko Dangote into the Kenyan market with a cement manufacturing plant, Kirubai welcomed the competition, emphasizing the company's readiness to compete in the market with its well-trained engineers and efficient facilities. The South African Portland cement company remains confident in its ability to excel in the evolving landscape of the cement industry in Kenya and East Africa.