March 27 (Bloomberg) -- Zambian demand for cement may double over the next 10 years, according to the local unit of Lafarge SA, the world’s biggest producer of the building and construction material.
The average pace of growth will probably be more than 10 percent a year until 2018, after a 13.2 percent increase last year, Chrissie Moloseni, acting chief executive officer of Lafarge Cement Zambia Plc, said in an interview in the capital Lusaka today. “If anything, we’re seeing more projects” than previous years.
Lafarge’s Zambian unit, in which the Paris-based company holds an 84 percent stake, is seeking to take advantage of state efforts to develop power and transportation infrastructure in Africa’s largest copper producer. The government raised $750 million through the sale of its maiden Eurobond last year to fund construction of roads, railways and power plants.
Lafarge Cement Zambia has a 68 percent market share in the country, Moloseni said. The southern African nation uses about 1.4 million tons of cement a year, according to Kaziwe Kaulule, the company’s marketing director.
There will probably be an oversupply of cement once the 1.5 million ton plant being built by Dangote Cement Plc, Africa’s biggest producer, comes on stream, Moloseni said. The $400 million plant is expected to begin production later this year, according to Dangote’s website.
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