Africa’s Massive Cement Expansion Could Drive An Energy Boom
Oil and Gas Production Climbs Despite Extreme Oil Price Volatility Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com.
For decades, Africa has lagged the world in energy consumption, accounting for less than 5% ofglobal energy suppliesdespite being home to a fifth of the world’s population.
The continent also accounts for a mere 2% of global manufacturing output, with the majority of African nations exporting raw minerals and agricultural products while importing expensive finished goods.
However, Africa now leads the world in a foundational, starter industry considered critical for industrialization: cement production.Indeed, across the continent we’re seeing a cement plant construction boom driven by rapid urbanization and massive infrastructure projects.
A total of 16 African nations are now building new cement kilns.
Data from theGlobal Energy Monitor (GEM)reveals that African nations now dominate the global pipeline for new cement plants, accounting for 42% of all cement production capacity currently being built across the globe.
Currently, Africa has around 441 million metric tons of annual cement production capacity in operation, good for 8% of the global total.
However, the continent also has 43.3 million tons of annual capacity under construction, while African nations have announced plans for another 23 million tons, bringing total capacity to over 507 million tons, or 15% of the global total.
Nigerialeadsthe pipeline for capacity under construction in the continent with 10 million tons currently being built, ranking second globally only to India.
As Africa's leading cement manufacturer, Dangote Cement Plc is executing a $1-billion pan-African expansion strategy through 2030 to reinforce its market dominance.
Dangote is currently upgrading its export terminals in Lagos to boost shipments to West and Central African neighbors.
Oil and Gas Production Climbs Despite Extreme Oil Price Volatility Similarly, BUA Cement is closing the gap with its competitors through a $1.05-billion investment as the country expands its footprint toward an 80-million-metric-ton national capacity target by 2030.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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