Investors Target Africa’s Infrastructure Gap For Cement Growth

Investors at Dangote Cement Plc’s Capital Markets Day in London have identified infrastructure investment, urbanisation, population growth and housing needs as major drivers of cement demand across Africa.

The just-concluded Capital Markets Day highlighted Dangote Cement’s African expansion and growth strategy to international investors, with discussions centred on production capacity, market opportunities, profitability, capital allocation, and the long-term outlook for cement demand across the continent.

Speaking, investors said the presence of Dangote Cement across West, Central, East, and Southern Africa provided exposure to several of the continent’s major growth engines, noting that market structure, logistics, and operational efficiency were critical to profitability.

The investors said Dangote Cement’s experience operating a cross-border clinker and cement network could also provide an advantage as regional trade liberalisation deepens.

The investors said Africa’s growing infrastructure deficit presented a long-term opportunity for cement manufacturers, with annual infrastructure investment estimated at between $130bn and $170bn below requirements.

According to them, the combination of rising populations, rapid urbanisation and housing shortages was creating structural demand for cement, particularly in countries with large domestic markets and strong construction activity.

One of the investors, identified as Jack, described cement as a foundational input for the structural trends expected to drive Africa’s economic growth, pointing to significant room for expansion in the continent’s construction and housing sectors.

He said the continent’s structural housing needs, population growth and urbanisation were likely to support cement consumption over the long term.

The investor also highlighted Africa’s large infrastructure financing gap, putting the annual shortfall at between $130bn and $170bn.

He also said the deficit created a “Multi-decade construction opportunity”, given the cement-intensive nature of infrastructure projects.

According to him, infrastructure investment remained materially below requirements across Africa, creating a “structural and long-duration source of cement demand growth.”

He pointed to roads and highways, ports and logistics, power infrastructure, industrial zones and public buildings as areas where increased investment could translate into higher cement consumption.

“Why does infrastructure demand matter for cement? Infrastructure demand is structural. Projects are cement-intensive. Regional integration accelerates investment,” he said.

He also cited major infrastructure developments, including port expansion projects, as examples of investments that can support cement demand across the continent.

They further said demand in these areas would not depend solely on individual construction projects but would also be supported by domestic economic activity and cross-border trade.

Others also pointed to the Company’s integrated quarry-to-customer model, strategically located production facilities, terminals, and distribution infrastructure as factors that support its ability to respond to different demand patterns across its markets.