Prime Highlight
- West China Cement plans to acquire South Africa’s AfriSam, signaling a strategic push by Chinese industrial firms into Africa’s construction market.
- The deal aligns with growing infrastructure demand in South Africa and could reshape the country’s competitive cement industry.
Key Facts
- The proposed acquisition is being reviewed by Botswana’s Competition and Consumer Authority, with public consultation open for ten days.
- AfriSam’s shareholders include the Public Investment Corporationand major local banks such as Nedbank, Standard Bank, FirstRand, and Absa.
Background
Chinese cement producer West China Cement has taken a major step to expand its footprint in Africa with a proposed acquisition of South African cement maker AfriSam.
Details of the planned deal surfaced in a notice by Botswana’s Competition and Consumer Authority, which has invited public submissions for or against the merger. The consultation process will close within ten days. The monetary conditions of the agreement have not been shared.
The buyer will be West International New Building Materials, a unit of West China Cement, which is listed on the Hong Kong Stock Exchange. The move highlights the growing push by Chinese industrial firms to seek opportunities abroad as construction demand slows sharply in China due to a long property market downturn.
Africa has emerged as a key destination for these companies. Last year, Huaxin Cement paid about $1 billion to buy a controlling stake in Lafarge Africa from Holcim. West China Cement is also developing cement plants in Ethiopia and Uganda, underlining its long-term interest in the continent.
AfriSam is one of South Africa’s largest privately held cement producers. Its shareholders include the Public Investment Corporation, Africa’s biggest asset manager, along with leading local banks such as Nedbank, Standard Bank, FirstRand, and Absa. These investors have been reviewing their stakes after years of restructuring and have explored exit options.
South Africa’s cement market remains highly competitive. PPC is the largest domestic producer, while other key players include Afrimat-owned Lafarge South Africa and Sephaku, which Dangote Cement controls.
The timing of the proposed takeover fits with the South African government’s infrastructure plans. President Cyril Ramaphosa has repeatedly said the country aims to become a major construction hub by upgrading transport, housing, and public works. Analysts expect these policies to lift cement demand over the medium term.
If regulators approve the deal, the AfriSam purchase will deepen China’s presence in Africa’s industrial sector and reshape South Africa’s cement industry.
