G Power Cement, a German cement company, would advance about $90 million for the construction of an 800.000 tonnes- a-year plant in Cameroon, Reuters reported on Tuesday.
This move makes G Power Cement the third cement company to set up shop in the Cameroon in the last two years.
G Power Cement joins Nigeria’s Dangote Group and Moroccan house-builder Addoha Group in supplying Cameroon and the Central Africa region’s booming construction sector.
According to Reuters, cement demand in Ghana has been growing at about 8 percent per year, driven largely by infrastructure projects including a new deep sea port, dams and railways as well as a boom in domestic housing.
In addition, the cocoa and oil producing nation’s economy is expected to grow by 4.7 percent in 2013 according to a Reuters poll, after hitting 5 percent in 2012, mostly boosted by construction and infrastructure projects.
“We intend to begin building the factory immediately after the foundation stone is laid sometime next month,” Chief Executive, Bernd Stiehl, told Reuters in Yaounde this week.
“Once construction starts, which will cost about 45 billion CFA francs ($91.59 million), it will take about 24 to 36 months to be completed,” Reuters quoted Stiehl as saying. “The company should start producing the first cement before the end of 2015 to be sold firstly in Cameroon.”
Stiehl said the plant would eventually step up production to supply markets in neighbouring Central Africa Republic and Chad.
Dangote’s $115 million plant is expected to provide 1.5 million tonnes of cement when it is completed by the end of the year. Addoha will produce about 500.000 tonnes per year. Construction at both plants is on-going.