The Competition and Consumer Authority (CCA) has given a conditional nod to a Chinese cement manufacturing firm’s takeover of South Africa-based AfriSam.
The R2.5 billion deal that will see the Hong Kong-listed West China Cement control AfriSam Botswana’s packaging plant by 2028.
While the acquiring group does not currently have a direct operational presence in Botswana, the deal gives it access to the local market through AfriSam.
A key condition requires the merged entity to establish and commission a cement packaging plant in Botswana within 12 to 24 months from the date of approval. For the purpose of this condition, commissioning means the facility must be constructed, equipped, licensed by all applicable regulatory authorities, and ready for commercial use.
At present, AfriSam Botswana supplies the domestic market through imports of 50kg cement bags from its South African operations. The mandated packaging plant is expected to introduce a degree of localisation into that model, with the CCA noting it will contribute to job creation and employment opportunities.
From a competition standpoint, the Authority said that although there is a horizontal overlap, as both firms operate in cement production, the absence of current supply by West China Cement into Botswana means the merger does not materially alter market structure. The merged entity will effectively inherit AfriSam’s existing market position rather than create new dominance.
However, the Authority flagged a potential relationship between West China Cement and Cheetah Cement Botswana, which, if substantiated, could introduce risks of coordinated behavior or market concentration. Cheetah Cement Botswana, a subsidiary of Namibia-based Whale Rock Cement, is a major player in Botswana’s cement market. It operates the Matsiloje Cement Plant and plans to expand through the Mmamashia Cement Plant, with a projected output of 800,000 tonnes per year.
The concern is grounded in precedent. In 2020, Namibian competition regulators blocked West China Cement’s attempt to acquire a stake in Ohorongo Cement over fears that its existing interests in Cheetah Cement could lead to monopolistic outcomes, including price coordination.
“The Authority is alive to the alleged relationship between WCC and Cheetah Cement Botswana which, if confirmed, may give rise to competition concerns, including potential unilateral and coordinated effects in the cement market,” the CCA said.
It added that the approval may be revisited or changed if the relationship is confirmed. Despite these concerns, the Authority said the potential benefits to the local market, particularly the establishment of the cement packaging plant, outweigh the risks.
Beyond the packaging plant requirement, the approval is subject to several operational conditions aimed at safeguarding local participation and supply continuity. The merged entity must maintain contractual relationships with locally registered transport providers currently servicing AfriSam Botswana, provided they meet operational and commercial standards. It must also supply clinker to local cement manufacturers on commercially reasonable and non-discriminatory terms, subject to availability and economic viability.
The company is required to submit periodic progress reports to the CCA detailing construction milestones, procurement activities, projected commissioning timelines, and staffing data until the plant becomes operational. Post-implementation, compliance reporting will continue annually for three years.
The transaction comes as West China Cement intensifies its expansion into Africa, where operations are increasingly driving profitability amid a slowdown in China’s construction sector.
The deal forms part of a broader, multi-year geographic reallocation of capital and production by Chinese cement producers away from a weakening domestic market toward higher-growth, under-supplied regions, particularly sub-Saharan Africa.
Last year, Huaxin Cement acquired a controlling stake in Lafarge Africa from Holcim for about $1 billion, consolidating its presence in Nigeria.
This shift is being driven by a deterioration in China’s cement demand profile. West China Cement’s 2025 financials show a divergence between domestic and international performance. While China still contributes slightly more than half of revenues, it generates only a marginal share of profits, with gross profit of about RMB0.5 billion compared with RMB1.96 billion from overseas operations.
According to West China Cement Chairman Zhang Jimin, Africa and other external markets are no longer peripheral growth areas but have become primary drivers of profitability. Declining real estate investment, weak infrastructure expansion, and a broader economic slowdown in China have compressed prices and volumes, forcing producers to seek more attractive markets.
Africa offers that opportunity. Low per capita cement consumption, rapid urbanisation, and infrastructure deficits create a demand profile that is underpenetrated and relatively price-supportive. West China Cement has identified these dynamics as central to its strategy, positioning itself as both a supplier and developer of cement infrastructure aligned with broader development corridors, including those linked to the Belt and Road Initiative.
“The Group believes its cement plant construction and cement production and sales expertise is uniquely positioned to support and benefit from economic and cement industry development in these geographies,” Jimin said.
Since 2020, West China Cement has expanded its production footprint across sub-Saharan Africa, building an integrated regional network of cement assets. In Mozambique, it operates Dugongo Cimentos, a 2 million-ton integrated plant, and is developing a $192 million facility in Nacala due for completion in 2025, alongside a planned plant in the Ancuabe district of Cabo Delgado.
In the Democratic Republic of Congo, the group strengthened its presence in December 2025 through the acquisition of the Cimenterie de Lukala (CILU) plant from Heidelberg Materials, complementing its existing Great Lakes Plant in Kalemie and the developing Katanda Cement Plant, expected to begin phase one production in early 2026.
Ethiopia anchors its East African strategy with 6.3 million tonnes of capacity at the Lemi National Cement Factory, while expansion continues in Uganda through the Moroto Plant and Jinja Grinding Mill, targeted for completion in 2026. In western Tanzania, the Kigoma Plant is being developed to serve domestic demand and cross-border markets, including Burundi, reinforcing a broader Central African logistics corridor.
The AfriSam acquisition provides West China Cement with immediate access to significant installed capacity, established distribution networks, and an existing customer base across Southern Africa, including Botswana, Eswatini, Namibia, Lesotho, and South Africa. With annual production capacity of 4.5 million tonnes of cement, 5 million tonnes of aggregates, and 1.5 million cubic metres of ready-mix concrete, AfriSam offers scale that would take years to replicate organically.
AfriSam, a leading but unlisted South African cement producer, counts several of the country’s major financial institutions among its shareholders, including the Public Investment Corporation, Nedbank, Standard Bank, FirstRand, and Absa.
