Who Owns Whom

Manufacture Cement Malawi

The Manufacture of Cement in Malawi 2023

Charles Chinya | Malawi | 29 May 2023

The Manufacture of Cement in Malawi 2019

Carole Veitch | Malawi | 05 December 2019

Enquire about this report

Report Coverage

This report covers the manufacture of cement, limestone and plaster in Malawi. It includes information on the state and size of the industry, its major players, developments and significant influencing factors, including illegal and cheap imports, input costs, the economic environment and opportunities for SMEs and entrepreneurs. There are profiles of six companies including the four major players Shayona, Cement Products, Portland Cement and Bwanje Cement, as well as notable industry role players Terrastone and Balaka Limestone Supply Company.

Introduction

• This report covers the manufacture of cement, limestone plaster in the Malawi.
• Malawi’s cement industry is dominated four major players, and is under threat from low cost imports and an illegal industry that is said to account for almost a third of sales.
• Demand for cement will be driven by urbanisation and population growth that will result in demand for housing, and increased government infrastructure development projects, particularly roads.
• Challenges of power blackouts may be reduced as the government plans to rehabilitate and modernise the power system.

Strengths

• Government tax incentives.
• Industry operators are committed to restoring land disturbed by limestone to its original state.
• Malawi has limestone and gypsum deposits.
• Malawi has the raw materials, clinker and cement production capacity to meet the requirements of the domestic market.
• Proactive initiatives have been implemented to lessen the industry’s carbon footprint.
• The industry is innovative and undertakes research and development and is harnessing digital technologies.

Weaknesses

• Corruption is still a major problem.
• High inflation rates.
• Inadequacy of local distribution networks.
• Policy uncertainty.
• Poor technology infrastructure.
• Shortages of foreign currency.
• The cement industry is energy intensive.
• The industry is dominated by four large players.
• There are frequent power outages.
• There is a shortage of highly technical skills and semi-skilled labour.
• Transportation networks are underdeveloped, and distribution costs are high.

Opportunities

• Exporting cement, lime and plaster to other African markets.
• Government efforts in developing small-scale quarrying and artisanal mining.
• Rising urbanisation rate and population presents building and construction opportunities, which will drive demand for building materials.
• Small-scale quarrying and artisanal lime-making offer small business development opportunities.
• The migration to low carbon processes and products offers the possibility of new revenue streams.

Threats

• Adverse and extreme weather patterns.
• External geopolitical threats and global macroeconomic pressures, which could result in lower levels of investment and donor aid.
• Funding gap in infrastructural development.
• Persistent smuggling and the influx of cheap imports.
• Slow industrial drive.

Outlook

• For Malawi to meet current housing demand, about 21,000 new units must be constructed in the next 10 years.
• In May 2022, the government announced plans to build 10,000 houses for the defence force, police and prison service at a cost of US$345m. The projects will benefit the cement industry.
• A US$257m project will rehabilitate, upgrade and modernise Malawi’s power system which will reduce blackouts. Increased energy availability is critical for cement industry growth.

Read More..
The Manufacture of Cement in Malawi
The Manufacture of Cement in Malawi 2023

Full Report

R 20 000.00(ZAR) estimated $1100.87 (USD)*

Industry Landscape

R 14 000.00(ZAR) estimated $ 770.61 (USD)*

Historical Reports

The Manufacture of Cement in Malawi 2019-12-05

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 4
3.1. Industry Value Chain 7
3.2. Geographic Position 8
3.3. Size of the Industry 9
4. LOCAL 11
4.1. State of the Industry 11
4.2. Key Trends 13
4.3. Key Issues 13
4.4. Notable Players 13
4.5. Trade 14
4.6. Corporate Actions 16
4.7. Regulations 16
4.8. Enterprise Development and Social Development 17
5. AFRICA 18
6. INTERNATIONAL 25
7. INFLUENCING FACTORS 28
7.1. Unforeseen Events 28
7.2. Economic Environment 28
7.3. Infrastructure Development 30
7.4. Cheap Imports and Smuggling 30
7.5. Labour 31
7.6. Environmental Issues 32
7.7. Technology, R&D, Innovation 32
7.8. Government Support 34
7.9. Input Costs 34
7.10. Corruption 35
8. COMPETITIVE ENVIRONMENT 35
8.1. Competition 35
8.2. Barriers to Entry 36
9. SWOT ANALYSIS 36
10. OUTLOOK 37
11. INDUSTRY ASSOCIATIONS 38
12. REFERENCES 38
12.1. Publications 38
12.2. Websites 38
APPENDIX 1 40
Summary of Notable Players 40
COMPANY PROFILES 41
Balaka Limestone Supply Company Ltd 41
Bwanje Cement Company Ltd 42
Cement Products Ltd 43
Portland Cement (Malawi) Ltd 45
Shayona Cement Corporation Ltd 47
Terrastone Construction Ltd 49

Introduction

This report covers the manufacture of cement, lime and plaster in the Republic of Malawi. Cement products are inextricably bound to the construction sector and are regarded as core building blocks of Malawi’s socio-economic development agenda. Still battered by the devastation wrought by cyclone Idai and the political upheaval that erupted following the May 2019 elections, the East African Rift Valley nation appears to be at a crossroads. Commentators say that along with rebuilding the infrastructure destroyed in the floods of March 2019, far-reaching economic, political and structural reforms are vital if Malawi is to realise its untapped potential. Meanwhile, much to the concern of the country’s cement producers, cement and related goods continue to flood across Malawi’s borders, undercutting locally manufactured products.

Strengths

• Global market leader LafargeHolcim is represented in Malawi through its local subsidiary.
• Malawi has limestone and gypsum deposits.
• Malawi has the raw materials, clinker and cement production capacity to meet the requirements of the domestic market.
• Proactive initiatives have been implemented to lessen the industry’s carbon footprint.
• The industry is innovative and undertakes research and development.

Weaknesses

• Corruption, including tender fraud, is pervasive.
• Malawi’s manufacturing sector is underdeveloped.
• The cement industry is energy intensive.
• The industry is dominated by three large players.
• There are frequent power outages.
• There is a shortage of skilled labour.
• Transportation networks are underdeveloped, and distribution costs are high.

Opportunities

• Exporting cement, lime and plaster to other African markets.
• Rising urbanisation presents building and construction opportunities, which will drive demand for building materials.
• Small-scale quarrying and artisanal lime-making offer small business development opportunities.
• The migration to low carbon processes and products offers the possibility of new revenue streams.

Threats

• Domestic macroeconomic pressures.
• External geopolitical threats and global macroeconomic pressures, which could result in lower levels of investment and donor aid.
• Extreme weather events.
• Funding shortfalls and delays in the implementation of infrastructure projects.
• Political instability.
• Smuggling and the influx of cheap imports.

Outlook

President Mutharika remains at the helm of a divided Malawi pending the Constitutional Court’s verdict on electoral fraud. Analysts caution that investor confidence could be eroded by the prevailing climate of uncertainty. They further warn that allegations of election rigging have created a significant rift in the political landscape and that even if the court does not order a rerun of the presidential election, Mutharika’s second term in office is likely to be extremely challenging. With cyclone Idai-related reconstruction projects underway, stakeholders say that in addition to infrastructure development, the president will need to focus on rebuilding trust in his administration by strengthening governance, tackling corruption and implementing policy reforms. Economists predict that the economy’s growth momentum will accelerate over the medium-term, increasing to around 5.5%. The manufacture of cement and related products will be supported by improved energy supply. Stakeholders say that the introduction of measures to curtail smuggling and protect the industry from cheap imports will provide a much-needed stimulus and could encourage producers to scale up production to meet the anticipated growth in cement consumption.

The Manufacture of Cement in Malawi
The Manufacture of Cement in Malawi 2019

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

The Manufacture of Cement in Malawi 2023-05-29

R 20 000.00(ZAR) estimated $1100.87 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 3
2. COUNTRY INFORMATION 3
2.1. Geographic Position 5
3. DESCRIPTION OF THE INDUSTRY 7
3.1. Industry Value Chain 10
4. SIZE OF THE INDUSTRY 11
5. STATE OF THE INDUSTRY 13
5.1. Local 13
5.1.1. Trade 15
5.1.2. Corporate Actions 17
5.1.3. Regulations 18
5.1.4. Enterprise Development and Socio-Economic Development 19
5.2. Continental 20
5.3. International 24
6. INFLUENCING FACTORS 25
6.1. Economic Environment 25
6.2. Socio-Political Environment 27
6.3. Infrastructure Development and Construction 27
6.4. Input Costs 28
6.5. Cheap Imports and Smuggling 28
6.6. Technology, Research and Development (R&D) and Innovation 29
6.7. Labour 30
6.8. Environmental Concerns 30
7. COMPETITION 32
7.1. Barriers to Entry 33
8. SWOT ANALYSIS 34
9. OUTLOOK 35
10. INDUSTRY ASSOCIATIONS 36
11. REFERENCES 36
11.1. Publications 36
11.2. Websites 37
APPENDIX 1 40
Summary of Notable Players 40
APPENDIX 2 41
Global Competitiveness Report 2019: Malawi 41
COMPANY PROFILES 44
CEMENT PRODUCTS LTD 44
LAFARGE CEMENT MALAWI LTD 46
SHAYONA CEMENT CORPORATION LTD 48
TERRASTONE CONSTRUCTION LTD 50