Foundation Opposes Proposed Acquisition Of Afrisam By Chinese Firm

By Aza Abba, Abuja

The African Manufacturers Foundation (AMF) has raised concerns over the proposed acquisition of South African cement producer AfriSam by West China Cement Limited, warning that the deal could further weaken African ownership in the continent’s manufacturing sector.

In a statement on Tuesday, AMF said the transaction goes beyond a routine commercial deal and reflects a broader challenge facing Africa’s industrial development, the continued loss of strategic assets to foreign control despite the availability of African capital and bidders.

AfriSam, one of South Africa’s key cement producers, has faced prolonged financial difficulties following years of restructuring and heavy long-term debt. Major shareholders, including the Public Investment Corporation and local banks such as Nedbank, Standard Bank and Absa, have been seeking an exit, paving the way for the proposed takeover by the Chinese firm.

However, AMF noted that an alternative African-led proposal had been tabled by Camel Cement, owned by the Amsons Group, a vibrant and fast-growing pan-African cement producer.

The bid would have retained AfriSam under continental ownership and included Black Economic Empowerment (BEE) and women-led empowerment partners, aligning with South Africa’s transformation policies.

According to AMF, the Camel Cement proposal was structured as a long-term industrial investment, with plans spanning cement production, mining and energy, and aimed at expanding African industrial capacity within South Africa while strengthening intra-African trade.

“This was not a speculative bid,” AMF acting chief executive officer, Lebo Radebe, said. “It was a strategic move to deepen African participation in South Africa’s industrial landscape, in line with the objectives of the African Continental Free Trade Area and Agenda 2063.”

Radebe said the sidelining of the African-led bid raises questions about the continent’s ability to support homegrown industrial champions, particularly at a time when indigenous African companies are increasingly driving medium- and long-term investments across manufacturing and infrastructure sectors.

The likely acquisition by West China Cement comes amid a broader expansion by Chinese firms into overseas markets, as China’s domestic construction and property sectors continue to slow. AMF cautioned that increased foreign ownership, combined with rising import competition, could deepen external dependence in industries critical to infrastructure and development.

The implications of the deal extend beyond South Africa, with the takeover bid now under review by competition authorities in the Southern African Development Community (SADC), including the Botswana Competition and Consumer Authority.

Economist Dr Davison Gomo warned that growing foreign control of strategic industries across Africa poses long-term risks to sustainable development. He said external ownership often limits value retention, reduces local reinvestment, and reduces the continent’s ability to shape its own industrial future.

AMF said the AfriSam case highlights a wider policy dilemma for African economies: whether regulatory or financial systems, and the need to adequately support African capital and partnerships in securing and growing strategic industrial assets on the continent.