The same enterprise, the same bag of cement, Africa earns nearly eight times as much as China!

By the end of 2025, the production capacity of domestic cement enterprises in Africa has approached 40 million tons, accounting for nearly 25% of the total production capacity of cement clinker in Africa. Africa is becoming the "second battlefield" of Chinese cement enterprises. The most direct driving force for the change

from "optional" to "necessary" is the huge difference in profits. According to the data of

Western Cement in 2024, the gross profit of its African business per ton of cement is as high as 323 yuan, while the gross profit of its domestic business per ton is only 42 yuan-the same enterprise, the same bag of cement, Africa earns nearly eight times as much as China. South Africa's Mamba Cement, acquired by Jidong Cement in 2024, has a cumulative net profit of 253 million yuan from 2020 to 2023, and its profitability is quite strong. In the first half of 2025 , Huaxin Cement realized business income of 2.136 billion yuan in Africa, an increase of 21.51% over the same period last year-Africa has become the key engine of its performance growth.

On the contrary, in China, the utilization rate of production capacity has fallen below 50%, the profit has shrunk from more than 180 billion yuan at its peak to less than 30 billion yuan, and some areas have lost tens of yuan per ton of cement sold. The annual consumption of cement per capita in Africa is only about 140 kilograms-taking Nigeria as an example, with a population of 220 million and a consumption base of 140 kilograms per capita, the market growth space is extremely considerable.

One side is the domestic Red Sea which loses one ton by selling one ton, and the other side is the African Blue Sea which earns seven times by selling one ton. This account does not need to be calculated for a long time.

Mergers and acquisitions, deep ploughing and precise entry, the three ways to go to sea have their own ways

. Chinese cement enterprises have entered Africa and stepped out of three differentiated paths. Huaxin Cement made the most rapid

progress: in August 2025, Huaxin Cement completed the acquisition of 83.81% of the shares of Lafarge Africa in Nigeria for US $774 million, acquired four large cement plants with an annual production capacity of 10.6 million tons, and expanded the number of African countries to seven when it entered West Africa for the first time. It has become the largest and most widely distributed enterprise in China's cement industry overseas. Huaxin also plans to integrate and split its overseas business into overseas listings, and has raised about 13 billion yuan in 2025 to prepare enough "food and grass" for Africa's expansion.

Western Cement has chosen the deep ploughing route: the overseas production capacity has been 12.3 million tons and the production capacity under construction is 5.7 million tons, totaling about 18 million tons. In the first half of 2025, the acquisition of CILA Cement Plant in Congo will be completed, and the overseas production capacity will increase to 13.5 million tons. Western Cement sold Xinjiang Cement assets to Conch Cement for 1.65 billion yuan , clearly stating that the purpose was to "redeploy financial and management resources." Concentrate on the development of fast-growing overseas markets "-this is a clear signal to shrink from home and increase to Africa.".

Jidong Cement takes the "small and beautiful" precise entry route, acquiring 51% of Mamba Cement in South Africa in 2024, with a production capacity of only 1 million tons but a stable profit, with a cumulative net profit of 253 million yuan from 2020 to 2023.

"Going out" is only the first step, and "melting in" is the hard work

of 40 million tons of production capacity, accounting for nearly a quarter of Africa's total production capacity. The presence of Chinese cement enterprises in Africa is strong enough. But "going out" is only the first step, and "melting in" is the real hard work.

Africa is one of the regions with the most frequent regime changes and the highest incidence of unrest in the world. The military conflict in Congo-Brazzaville once impacted the local economic environment, and political risk is a sword hanging over every offshore enterprise. Local giants should not be underestimated-Dangote, the largest local cement company in Africa, has a production capacity of more than 60 million tons, plans to expand to 100 million tons, and is still the largest "local snake" in Africa in the next five years.

The cost side also has the test of "acclimatization". The cost of limestone mining in Africa is between 100 and 300 yuan, generally higher than 70 to 150 yuan in China; the price of coal in place fluctuates between 200 and 400 yuan. In some countries, the calorific value of coal is low and the transportation conditions are poor, so the energy cost per ton of cement is not easier than that in China. The high gross profit in

Africa is largely due to the good market supply and demand pattern rather than low production cost-once the production capacity is concentrated to break the local supply and demand balance, the high gross profit space will be narrowed. Chinese cement companies account for nearly 25% of production capacity in Africa, which is both an achievement and a pressure: the larger the existing share, the more difficult it is to maintain and grow.