Modern Quarrying Quarter 1 2021

CEMENT

Zimbabwean growth is supported by PPC’s recent investment into its US$85-million, 700 000 tonne per year mill in Harare.

The plight of South Africa’s cement producers has in recent years been a tale of two fortunes – better prospects across the rest of Africa and an uphill struggle at home. For PPC Ltd, South Africa’s largest cement producer, the decision to invest in capacity building projects in Zimbabwe, the DRC, Ethiopia and Rwanda in recent years is proving to be worthwhile. The company’s international business is providing a portfolio effect that is offsetting a weaker performance in the domestic South African market. By Munesu Shoko. BASKING IN THE GLORY OF AFRICAN INVESTMENTS

A t the start of the decade, PPC Ltd embarked on an African expansion programme with the aim to generate a big chunk of its turnover elsewhere on the continent. In fact, the company had a target to grow revenues outside its home market of South Africa from 23% in 2015 to 40% by 2017, a feat well accomplished. The strategic aspiration, however, has always been to become a major African cement producer. Having commissioned capacity building projects in strategic markets of Zimbabwe, Ethiopia, Rwanda and the Democratic Republic of Congo (DRC) some few years ago, PPC today is basking in the glory of its forward-thinking

investments as these markets have become an integral part of the company’s overall business. Judging by PPC’s financial results for the year ended 31 March 2020, the tough operating conditions experienced in the home market were offset by resilient performances in markets outside South Africa. The cement industry in South Africa has been in dire straits in recent years, largely due to unprecedentedly low levels of demand as a result of slow economic growth, which has forced producers to halve their capacities in some instances. The situation has been exacerbated by the influx of cheap, substandard cement imports, as well as third-party cement blenders thriving on deliberately

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MODERN QUARRYING QUARTER 1 - 2021