Côte d'Ivoire: A loan to Limak Afrika to increase cement production and meet demand

Limak Afrika is a joint venture between Limak Cimento (65%) and Afrik BTP and Equipement Overseas Group (“Afrikbat”) (35%).

With a turnover equivalent to EUR 420m in 2016 and an installed cement production capacity of 15 million tons a year, Limak Cimento is one of the leaders in the cement sector in Turkey. The company is currently conducting a regional diversification strategy, which has led it to invest in Mozambique and now in Côte d’Ivoire.

Afrikbat is an Ivorian company whose main activities focus on the construction industry and real estate development. The partnership between the two shareholders will combine Limak’s expertise in cement production and distribution and Afrikbat’s network in Côte d’Ivoire.

The project involves financing the construction of a cement grinding and bagging plant in Attinguié, Abidjan, with a capacity of 1 mtpa.

The launch of LIMAK Afrika will increase Côte d’Ivoire’s cement production capacity, in a context where the current capacity falls short of requirements for the development of infrastructure and for the housing shortage.

In terms of impact, the factory will help create and maintain some 400 direct and indirect jobs. The operation will also have a positive impact in terms of access, with an expected reduction in the price of a ton of cement of 20%.

Finally, the project will contribute to public revenues, with the payment of EUR 4m of taxes and levies over the next 5 years, and to Côte d'Ivoire’s GDP with some EUR 800 k a year.