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PPC Ltd builds $230 million cement factory in DRC

PPC Ltd, the leading cement supplier in southern Africa, is pleased to announce that it has signed a Memorandum of Understanding (MOU) with the Democratic Republic of Congo’s Barnet Group sprl, its local partner of choice.  

CEO of PPC, Ketso Gordhan, announced the cement company’s intentions to invest in a $230 million factory in the Democratic Republic of Congo (DRC). The greenfield project includes the construction of a one million ton per annum cement factory and associated quarry. It is located 20km from Kimpese in the western DRC, which will ensure easy access into the main markets. There are existing cement manufacturers in the region, however, the market is severely undersupplied. At present, the DRC has 16kg per capita annual cement consumption, the lowest in Africa, compared with the South African average of 240kg and the global average of 400kg.

PPC made significant progress with its Africa strategy last year with the acquisition of a 27% stake in the Habesha Cement Share Company in Ethiopia for $12m and 51% of Cimerwa of Rwanda for $70m. It also received its Zimbabwean indigenisation certificate, which opened the way to expand its operations. This was followed by the announcement PPC made regarding its intention to invest in a new one million ton per annum cement plant in Harare.

“This investment is another of PPC’s commitments to invest in sub-Saharan Africa and we are very confident about the DRC. 22% of PPC’s revenue comes from outside South Africa, at present, but the target is to increase this to 40% by our 2016 financial year. We look forward to a growing contribution and partnership with the DRC in the years ahead,” said Gordhan.

To better understand the market, PPC has partnered with local entrepreneur, Jean Saidi Bamanisa, Chairman of the Barnet Group, who is also the Honorary Secretary of the Federation of Congolese Companies. He was elected Governor of the Oriental Province of the DRC.

Recently, Remy Musungayi, the DRC Minister of the Industry and Small and Medium Enterprises, welcomed South Africa-based companies to explore the opportunities offered by its new special economic zone (SEZ). The DRC Government has also placed an emphasis on infrastructure projects.  

Follow PPC on Twitter @PPCisCement, like us on www.facebook.com/PPC.Cement and visit us at www.ppc.co.za.

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