PPC's problems highlight challenges facing local companies venturing into Africa
PPC, across its four units in the DRC, Ethiopia, Rwanda and Zimbabwe, has invested in cement plants with a combined project cost about R9.2-billion
PPC's ventures into Africa are a bittersweet tale of navigating difficult terrain and keeping an eye on the long-term gains to be reaped from its investments. But for now, CEO Darryll Castle would rather take a more conservative view of the company's operations as he reflects on "a challenging financial year" for PPC. Liquidity constraints, leadership uncertainty and a 9% fall in cement prices - in Zimbabwe, the Democratic Republic of Congo and Botswana - are some of the difficulties Southern Africa's largest cement maker faces from its operations on the continent. Add its travails in South Africa - which include low prices for cement, the threat posed by cement imports from Pakistan and China and slow economic growth compounded by the credit ratings downgrades - and PPC shareholders are likely to be on the edge of their seats. This week PPC reported that group revenue rose 5% to R9.6-billion in the year to end-March. Group earnings before interest, tax, depreciation, and amortisati...
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