In the past few years, emerging economies have accounted for an increasing share of global gross domestic product (GDP). Following the economic crisis as well as during the recovery process, emerging economies cemented their role as critical drivers of global growth which made it easier to recover due to their contribution.

Africa, a continent of rich cultures and stories, is one of the fastest emerging economies. This year Africa’s GDP is expected to strengthen to 5% after experiencing subdued expansion in 2013 (3, 5%) and 2014 (3, 9%). In 2014, the domestic demand in many countries was boosted by private consumption and public infrastructure investment. In the same year, Africa’s supply side growth was mainly driven by agriculture, extractive industries, construction and services and to a small degree by manufacturing.

Modernisation and transformation which is a process whereby new, more productive activities arise and resources move from traditional activities to these newer ones , is also proceeding  within some sectors.  To date, many African economies have been rather resilient to the sharp fall of international commodity prices. With that been said, African countries such as Angola have been deeply affected by the drop in oil prices.  Despite the somber activities that are taking place on the African continent, there is positive effects as lower oil prices ease inflation, increases real incomes and strengthen export markets.

Honing in on the cement industry in particular, this industry usually looks at infrastructure spend in order to determine growth prospects and to align their strategies accordingly. Construction industries that exist in emerging markets are expected to continue to grow at a much faster rate than the advanced economies.  From 2016 to 2020, the growth in emerging markets will record a 5, 3% annual expansion compared to the construction industries that operate in advanced economies, which are forecast to expand by 2,2% a year on average.  In order to achieve Africa’s vision for Africa it is imperative to source innovative means to reduce the costs of sustainable energy and mobility and in turn create jobs for the youth and women.

The question then becomes, what is Africa’s vision? The African Union’s vison for 2063 has created a compelling call to action for both public and private players to form partnerships for the growth and development of Africa. Albeit there being an opportunity for growth, we can’t implement the same business models across various countries in the continent. It’s imperative that we critically review the value chain through its various stages, against the backdrop of Africa’s vision and sustainable growth imperatives. 

PPC who are key stakeholders and investors in and on the continent have recently revisited their vision to comply with new opportunities that have risen in Africa. Njombo Lekula (Managing Director: International Operations at PPC Ltd) believes that you cannot treat Africa as a homogenous entity and that for our presence in Africa to catalyst meaningful change and enable growth and development, we need to redefine our definition of best practice.

Njombo Lekula will be in attendance at the 8th Africa CemenTrade Summit that will be taking place in Rwanda from 15-16 March 2016. This summit which is endorsed and supported by Rwanda’s Ministry of Infrastructure, officiated by Minister Honorable James Musoni will focus on Africa’s competitive cement sector. Busisiwe Legodi (CEO, CIMERWA Cement) will also be present to elaborate on CIMERWA’s  commitment to the development and growth of Rwanda and neighboring Burundi and East DRC.