ASS- ciment- HeidelbergCement- 2010 - VA

Cement industry
Sub-Saharan Africa
PROPARCO
PROPARCO
Financing the construction and extension of
cement plants in Sub-Saharan Africa
Project start-up: 2010
Financing: $35M equity investment
Partner: HeidelbergCement Africa
Impacts
Context
The construction and
extension of cement plants
in Sub-Saharan Africa will
help:
Sub-Saharan Africa’s cement market is hampered by local
production capacities, which are often limited and give rise to
high import levels, a lack of competition and upward price trends.
This situation puts a brake on the implementation of
infrastructure, construction and housing projects, which are
however essential in order to support the high demographic
growth experienced by this region.
• Bring down the price of
cement;
• Scale up domestic
production (and replace
imports);
• Boost the region’s
building and public works
sector.
It will consequently make
an effective contribution to
developing the economies
of the countries
concerned.
The project will also
improve the
environmental impact of
HeidelbergCement’s
activities in Africa by
renewing and/or
modernizing part of its
production equipment.
HeidelbergCement has
adopted an Environmental
and Social Management
Plan which includes
mandatory environmental
criteria in line with the
highest market standards.
HeidelbergCement AG, a German firm listed on the Frankfurt
Stock Exchange, is one of the world’s four leading cement makers.
It operates in 50 countries on 5 continents and is also one of the
most firmly established companies in Africa: Benin, DRC, Gabon,
Ghana, Liberia, Sierra Leone, Tanzania and Togo.
In order to pursue the development of its activities in Africa,
HeidelbergCement has launched a capital increase - $60m at this
stage – for its holding company, Scancem International ANS,
which holds all its African interests.
Project objective
The project is in line with PROPARCO’s strategy to support the
cement industry when the latter helps boost infrastructure and
construction development and, at the same time, complies with
strict environmental standards.
Project description
PROPARCO has made a $35M equity investment in Scancem’s
capital increase, alongside the International Finance Corporation
(World Bank Group). The funds raised have been earmarked to
finance the construction of new cement plants or the extension of
existing ones, and to improve the environmental impact of the
latter.
Cement industry
Sub-Saharan Africa
PROPARCO
PROPARCO
Dr. Bernd Scheifele, CEO of HeidelbergCement
“We are very happy about the partnership that creates a win-win situation for all parties involved.
Through the co-operation, HeidelbergCement secures attractive equity financing for the
development of local cement capacities in Africa. In this partnership we will contribute our longstanding international experience in the construction material industry and strong governance,
ethical and environmental management policies. The investment program will stimulate the
improvement of local infrastructure and housing, create additional jobs and improve
environmental standards.”