Displaying items by tag: Ghana

Nigeria: Dangote Cement recorded a net profit of US$422m in the first half of 2020, up by 5.8% year-on-year from US$308m in the first half of 2019. Net sales were US$1.23bn, up by 2% from US$1.21bn. Nigerian sales made up 70% of the total at US$861m, up by 1.2% from US$850m.

The company said, “Most Covid-19 lockdown measures started at the end of March 2020 and peaked in April 2020. The response by the authorities varied in nature from specific temporary restrictions in some countries to a complete temporary lockdown for non-essential businesses. Our operations in South Africa, Congo and Ghana were shut down due to full or partial lockdown in most of April 2020. By early May 2020, lockdown had eased, and all our businesses were operational.”

Regarding its Nigerian operations, it said, “Lagos, Abuja and Ogun states locked down from 31 March 2020 to 4 May 2020. As a result, April 2020 volumes were heavily impacted and 28% lower than in April 2019. Other states joined with complete or partial lockdown during the month.” It estimated that a recession would strike the economy before 31 December 2020, compounded by the Covid-19 outbreak and a first-half global oil price slump.

Ghana: Diamond Cement Group has donated 250t of cement and US$17,500 to the government to support its efforts to curb the spread of coronavirus in Ghana. The Ghanaian Times newspaper has reported that the cement will be used for hospital repairs. Diamond Cement Group chair Mukesh Patel said, “It is crucial that we all work together to minimise the negative impact of the pandemic on economic activities.”

Ghana: Carlos Ahenkorah, Deputy Minister of Trade and Industry, says that government is considering a temporary block on imports on cement. However, he added the catch that it would only do this if local producers could ensure ‘fair’ pricing, according to the News Statesman newspaper. He made the comments at an award dinner organised by CIMAF.

Ghana: The Department of Trade and Industry has declared a moratorium on the construction of new cement plants in response to a cement surplus on the domestic market. Chamber of Cement Manufacturers executive secretary George Dawson-Ahmoah said that consumption stands at 6.5Mt/yr nationally. Ghana’s eight producers are utilising 50% of an total installed capacity of 12Mt/yr, according to All Africa News. “The government is investigating measures to prevent imports,” said Carlos Kingsley Ahenkorah, Deputy Minister of Trade and Industry. This may involve cement quality certification by the Ghana Standard authority.

Turkey: Turkish Cement Manufacturers’ Association (TÇMB) chairman Nihat Özdemir says that the local industry needs to focus on exports rather than for local consumption. He made the comments at a meeting between the TÇMB and the Cement Industry Employers' Association (ÇEİS) hosted by Deloitte, according to the Dünya newspaper. Exports grew by 46% year-on-year in the first half of 2019 to a value of US$444m driven by deliveries to the US, Ghana and Israel. ÇEİS chairman Suat Çalbıyık called on the Turkish State Railway company to abolish its fixed tariff for goods moved up to 150km to further support the industry.
TÇMB data shows that local consumption fell by 24% year-on-year to 5.12Mt in the first quarter of 2019 from 6.74Mt in 2018. Domestic sales fell by 34% to 3.98Mt from 5.99Mt. Exports rose by 37% to 0.94Mt from 0.68Mt. Local decline in the market has been blamed on a weak housing market and a slowdown in the Turkish economy.

Ghana: The Cement Manufacturers Association of Ghana (CMAG) is lobbying the government against a recent fumigation levy of US$0.50/t on imported clinker by the Ministry of Health. At a recent meeting the association discussed this tax and others negatively affected the cement sector, according to the Business and Financial Times newspaper. It is also unhappy about more longstanding charges, including a VAT restructuring levy of 5%, and a 2% special tax as well as a new 11% electricity tariff and a proposed increase in the cost of a certification licence from the Ghana Standards Authority and impending. CMAG is also complaining to the Customs Division of the Ghana Revenue Authority about imports.

Ghana: The Cement Manufacturers Association of Ghana (CMAG) and representatives of other industries including steel and food have petitioned the Ghana International Trade Commission to protect them from ‘unfair’ trade practices. They have asked the government to follow World Trade Organisation (WTO) rules and match export rebates with additional tariffs, according to the Ghanaian Times newspaper. CMAG secretary said that the local cement industry had a production capacity of 11.6Mt/yr and that this was enough to meet local demand.

Ghana: Solomon Namliit Boar, the regional minister-designate for the newly created North East Region, says that negotiations are on-going for a new cement factory to be built at Gbandaa in the Nalerigu Municipality. The project is intended to make use of a 20Mm3 limestone deposit in the area, according to the Daily Guide newspaper. The project has remained in the planning stage for some time with Vice President Alhaji Dr Mahamadu Bawumia assuring local residents in 2017 that the government would find investors.

Nigeria: Domestic sales growth drove Dangote Cement’s financial results in 2018. Its local cement sales volumes grew by 11.4% year-on-year to 14.2Mt in 2019 from 12.7Mt in 2018. Sales in the rest of Africa remained stable at 9.4Mt. Sales revenue grew by 11.9% to US$1.71bn in Nigeria and by 9.6% to US$784m in the rest of Africa. Overall revenue grew by 11.9% to US$2.49bn from US$2.23bn. Earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 12.1% to US$1.20bn from US$1.07bn.

“This is a record financial performance by Dangote Cement, driven by a strong increase in our home market, Nigeria, despite heavy rains and uncertainties about the election,” said Joe Makoju, group chief executive officer. He added that, although Pan-African volumes were unchanged in 2018, he was confident that the group would see an increase in 2019, driven by higher volumes in Tanzania, Ethiopia, Congo and Sierra Leone. Elsewhere in Africa the cement producer said that plant shutdowns in Tanzania due to delays to a gas turbine installation, civil unrest in Ethiopia and a reduction of imports from Nigeria to Ghana had reduced its sales.

Ghana: Ghacem has linked its Kumasi terminal to the Data One server, a logistics product, to centralise sales and ordering processing. It follows requests by distributors following a survey, according to the Ghanaian Times newspaper. Sales and orders at the terminal will now use a similar system to that at the company’s plants at Tema and Takoradi. Plans are now being prepared to link the company’s other terminals – at Tamale, Buipe, Techiman and Dwenase – to the system.