2024-04-02 10:22:55
It is a new major player which is shaking up the landscape of the Cameroonian cement industry. As exclusively revealed by 237online.com, your reference media, Cimpor, the Portuguese cement juggernaut, recently completed the construction of its cement plant in Kribi, with a capacity of one million tonnes per year. But if this arrival promises increased competition, it also raises crucial questions about the quality of the products offered and the state of an already saturated market.
Powercem 32.5 and 42.5: A discreet entry that arouses suspicion
Since June 2023, Cimpor has discreetly introduced its Powercem 42.5 cement to the Cameroonian market, already visible in many hardware stores. A smooth entry, completed in March 2024 by the launch of the Powercem 32.5, for the moment limited to Kribi. But this shadow strategy gives rise to suspicion. Why such discreet communication, if not to hide quality defects? Doubts that Cimpor will have to resolve quickly, otherwise it will see its reputation tarnished from its first steps in Cameroon.
An overcapacity market: Between fierce competition and high prices
The arrival of Cimpor brings the number of cement plants in Cameroon to 6, for a total capacity of 8.4 million tonnes, exceeding national demand estimated at 8 million tonnes. Cimencam (2.3 million tonnes), Dangote Cement Cameroun (1.5 million tonnes), Cimaf (1.5 million tonnes), Medcem Cameroun (600,000 tonnes) and Mira Company (1.5 million tonnes) already face fierce competition. Paradoxically, despite this overcapacity, prices remain high compared to neighboring countries. An observation which questions the real functioning of this market.
The risk of a race to the bottom in quality
In this arena where anything goes, it is quality that risks being sacrificed on the altar of the race for market share. Faced with seasoned competitors, the temptation could be great for Cimpor to cut corners on standards to offer attractive prices. A short-sighted strategy, which would be to the detriment of consumers and construction safety. The authorities will have to be uncompromising regarding compliance with standards by this new entrant.
Strengthened regulation, key to a healthier market
Because it is strong and effective regulation that the Cameroonian cement market needs. Without hindering competition, it must guarantee impeccable product quality, through strict controls and dissuasive sanctions. It must also promote healthy competition, by tracking down dumping and cartel practices which distort the game. It is at this price that the arrival of a player like Cimpor can be truly beneficial, by stimulating innovation and pushing quality upwards.
Beyond Cimpor, the urgency of a collective move upmarket
Because the quality challenge does not only concern Cimpor. The entire Cameroonian cement industry must move upmarket to offer products that meet the best international standards. A requirement that involves investments in R&D, training and production tools. A welcome boost for the safety of buildings and the competitiveness of the export sector. A challenge that cement manufacturers must take on together, beyond their rivalries.
237online.com, your sentinel on the economic front, will closely follow the evolution of this issue. We will be uncompromising on quality, not hesitating to point out shortcomings, while welcoming progress. Our compass is the interest of consumers and the excellence of Cameroonian industry. A course that we will maintain, while the arrival of Cimpor redistributes the cards in the cement market.