African continent's construction sites are dusty, and the financial directors of Chinese cement companies are calculating the possibility of gross profit exceeding 300 yuan per ton of cement.
"Overseas business has become an important performance support for the company." At the end of 2024, Huaxin Cement bluntly stated the current situation of the domestic cement industry in an acquisition announcement. As the domestic cement market continues to decline, the pace of leading enterprises going to sea has accelerated significantly. Just a few days ago, the Western Cement Uganda 6000t/d Cement Clinker Project was put into operation, which became the first shot of China's cement enterprises in Africa in 2026. According to the statistics of
China Cement Network, by the end of 2025, the cement clinker production capacity of domestic cement enterprises in Africa has exceeded 31.8 million tons, accounting for 31.07% of the total overseas production capacity of Chinese cement enterprises. Africa has become a hot spot for overseas investment of domestic cement enterprises.
Market Reality: Winter
in Domestic Cement Industry China's cement industry is experiencing a bitter winter. From 2022, the domestic demand for cement began to shrink dramatically, and by 2025, the national cement output decreased by 684 million tons, or 28.78%, compared with 2021. In the first half of 2024, the cement industry suffered the first industry-wide loss since the new century. In 2025, although the profits of the whole industry have improved, the overall situation of the industry is still very grim, which is more based on the high prices at the beginning of the year and the decline in coal costs. The high price has become a thing
of the past. In 2024, the price of cement in China dropped to about 350 yuan/ton, only higher than that in Iran, which is at a global low. In sharp contrast, the price of cement in Ethiopia is as high as 2518 yuan/ton, that in the Central African Republic is 2388 yuan/ton, and that in Uganda, which has just been put into production in the west, is more than 1300 yuan/ton. The intensification of the contradiction between
supply and demand is the core of the industry's predicament. With the weak operation of the real estate industry and the decline in the growth rate of infrastructure investment, the demand for cement has dropped sharply. In 2025, the domestic cement output will be 1.693 billion tons, with a year-on-year decline of 6.9%. The industry expects that the national cement demand will be reduced to 1.0-1.2 billion tons by 2030. The market competition is becoming increasingly fierce, and the vicious competition at low prices is frequent.
The domestic cement market has limited space and is shrinking. In order to find a growth point, cement enterprises must "expand outward in space". Going to sea has been changed from optional to mandatory. Opportunities
in Africa: a blue ocean market
with huge potential The African continent has attracted the attention of Chinese cement enterprises with its huge population base and development potential. As the most populous country and the largest economy in Africa, Nigeria's cement market is representative. The annual consumption of cement
per capita here is only about 140 kg, far below the international average level, showing a huge room for growth. Moreover, there are only a few major cement enterprises in Nigeria, with high market concentration and good industry structure. The high profitability of the
African market is a key factor in the layout of Chinese enterprises. According to the data of Western Cement in 2024, the gross profit per ton of cement in its African business is as high as 323 yuan, far exceeding 42 yuan in China. Even allowing for hidden costs, the region is still significantly more profitable than at home. The layout
of Huaxin Cement in Africa is particularly positive. In August 2025, the company completed the acquisition of an 83.81% stake in Lafarge Africa, Nigeria, for a consideration of $773.86 million. The acquisition gave Huaxin Cement access to four large cement plants in Nigeria with an annual capacity of 10.6 million tons.
Strategic layout: the differentiated path
of leading enterprises The layout of Chinese cement enterprises in Africa presents a diversified strategic path. Huaxin Cement quickly gained market share through large-scale mergers and acquisitions. After the acquisition of Lafarge Africa, the overseas cement clinker production capacity reached 26.598 million tons, becoming the largest overseas cement production enterprise in China's cement industry.
Huaxin Cement also plans to integrate overseas businesses and split them into overseas listings in order to broaden financing channels and enhance global competitiveness. According to the semi-annual report of Huaxin Cement in 2025, the overseas market has become the key engine of its performance growth. During the reporting period, the company achieved a net profit of 474 million yuan in Asia, an increase of 44.14% over the same period last year, and an operating income of 2.136 billion yuan in Africa, an increase of 21.51% over the same period last year.
Conch Cement has chosen the way of steady expansion, and has started its internationalization journey since 2011. It has established 18 physical factories in Indonesia, Myanmar, Cambodia, Laos, Uzbekistan and other countries, and has a clinker base under construction, with an overseas cement production capacity of up to 26 million tons. In the first half of
2025, the gross profit margin of Conch Cement's overseas business reached 45.23%, up 5.24 percentage points from the same period last year.
Jidong Cement acquired 51% of Mamba Cement in South Africa in 2024, formally opening a new journey of overseas development. Although Mamba's annual cement production capacity is only 1 million tons, as one of the most competitive enterprises in South Africa, its profitability has been stable at a high level since 2018, with a cumulative net profit of 253 million yuan from 2020 to 2023, which is much higher than that in China.
Risks and Challenges: The Realistic Dilemma
of the African Market Although the African market has great potential, the risks and challenges can not be ignored.
Political stability is the primary concern. Africa is the region with the most frequent regime changes and the highest incidence of unrest in the world. Tribal conflicts and local protectionism may have an impact on investment, such as the recent military conflict in Congo-Brazzaville, which once had a certain impact on the local economic environment. The issue of
cost also needs to be reassessed. Although the gross profit per ton of cement in Africa is high, the cost of plant construction and acquisition is much higher than that in China, resulting in huge financial costs and depreciation costs. In addition, hidden costs such as local relations and donations will also affect the actual benefits.
Currency fluctuations and profit repatriation are another challenge. African countries have limited foreign exchange reserves and may have difficulty repatriating profits earned abroad. Large fluctuations in international exchange rates may turn profitable projects into losses due to exchange rate changes.
In addition, supply chain fragility and lack of expertise are also constraints. Africa's infrastructure is poor, and the shortage of raw materials may increase operating costs. At the same time, the lack of international talent reserve familiar with the local environment, language and business is also a realistic problem faced by enterprises.
Future outlook: from "going out" to "melting in"
As more and more Chinese enterprises enter the African market, avoiding "involution" has become a common topic. The relevant person in charge of Conch Cement pointed out that it is necessary to strictly prevent the "involution" vicious competition such as price war from being brought abroad. Jidong Cement also reminds us that the concentration of Chinese cement enterprises going to sea may lead to a cluster of destination countries, extending domestic homogeneous competition to overseas countries.
Successful enterprises need to move from "going out" to "melting in". Huaxin Cement plans to quickly upgrade and renovate the plant after taking over Lafarge Africa. This strategy of localized operation and technology empowerment is more sustainable than simple capital export.
"Building a Belt and Road country" has become the main direction for cement enterprises to go to sea. With the deepening of the initiative, infrastructure construction in relevant areas will provide continuous support for cement demand. India, the Middle East and Africa are expected to be the main sources of growth in overseas markets.
At present, the pattern of the global cement market is being redrawn, and Chinese cement enterprises have occupied a favorable position in this round of shuffling.
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