A major shake-up is coming to South Africa’s cement sector as a China-linked group moves to take full control of AfriSam, one of the country’s established construction materials groups. According to a notice from Botswana’s Competition and Consumer Authority, West International New Building Materials — through its parent company, West China Cement — has applied to buy 100% of AfriSam Holdings. Based in Johannesburg, AfriSam has operations across the country and subsidiaries in the region, including in Botswana.
West China Cement, which has manufacturing operations and exports across Asia and parts of Africa, is set to take over AfriSam’s operations, stepping into the company’s regional footprint, inheriting its plants and assets. The domestic cement market is expected to grow at a compound annual rate of 2.5% between 2025 and 2034, reaching about 17.14-million tonnes by the end of the period, according to a World Cement update. AfriSam’s main shareholders include the Public Investment Corporation (PIC) and four local banks — Nedbank, Standard Bank, FirstRand and Absa, which have accumulated significant stakes through past restructuring.
Matias Cardarelli, CEO of rival cement producer PPC, told Business Day the deal was no surprise. “This transaction has been expected. We have indicated for some time that shareholder change is under way in our sector,” he said.
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Cardarelli said PPC’s “Awaken the Giant”turnaround strategy was developed in anticipation of the change. “Our strategy has been designed and implemented with these changes in mind,” he said, highlighting the group’s investments in local operations, talent and supply chains. “At PPC, we are investing significantly in our local operations, local talent and local value chain development, which will ensure that our contribution to South Africa’s economic growth is meaningful and sustainable,” he said.
Though ownership changes are part of the sector’s evolution, Cardarelli stressed that regulatory oversight remains vital. “The health and safety of South Africans must never be compromised. It is essential that the South African authorities ensure the quality compliance of cement and a level playing field so that cement produced in South Africa is not at a disadvantage compared to imports,” he said. He said AfriSam’s prospective new owners already imported cement into South Africa from Mozambique, underlining the importance of maintaining standards and fair competition.
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