Egypt’s cement industry still growing strong
The Egyptian cement industry has more than weathered the financial storm. Demand has remained high, exports have been banned, and new production capacities are both under implementation and planned.
Browse the latest africa & the middle east news and articles.
The Egyptian cement industry has more than weathered the financial storm. Demand has remained high, exports have been banned, and new production capacities are both under implementation and planned.
The financial crisis has hampered growth in Sub-Saharan Africa, which is dependent on exports of its primary commodities as well as aid inflows and foreign direct investment. Trade balances are shrinking and capital inflows are declining. However, when the global economy is revived, the region’s growth momentum will return.
The Arab cement industry has developed remarkably, particularly through the past three years. Its expansion was closely linked to the building and construction industry, which witnessed unprecedented growth in Arab countries. This resulted in higher demand for cement at 10 - 15%, reaching more than 20% in Qatar.
Cement producers in Kenya, Uganda and Tanzania are struggling to remain competitive in a period of strong demand. Overseas imports, from countries such as China, Egypt, India and Thailand, are flooding the region and are priced significantly lower than the domestic product thanks to cheap freight rates. Cement producers are calling on governments to step in to protect their industries.
Cement and sand imported to Bahrain from Saudi Arabia will henceforth be shipped rather than transported by truck across the King Fahd Causeway, according to reports. This will help to ease traffic congestion and improve delivery times.
Construction markets around the world are being hit this year with the steepest decline in activity in at least 20 years, and the formerly booming construction industry of the Middle East has been no exception. The region will witness a 2.6% decline in total construction spending this year, a dramatic change after average growth on the order of 9% over the past several years.