Cement manufacturers who were hoping to capitalise on massive infrastructure projects in East Africa now face a bleak future as competition takes its toll on earnings. The industry has witnessed a downturn in recent times owing to significant investments by manufacturers to increase their capacity and the entry of new players in the region. This has ignited price wars for control of the market.
According to AIB Capital, cement prices in East Africa dropped from an average of $140 per tonne in 2011 to $100 per tonne in 2015, and have now plummeted to an average of $80 per tonne, driven by Dongote Cement’s entry into the region.
