(Business in Cameroon) – In its 2023 annual report, the Central African States Development Bank (BDEAC) revealed it funded the production capacity expansion of Cameroonian company Entreprise Générale Industrielle SA (EGIN SA). This cement plant, located in the Douala port industrial zone, is set to significantly increase its output.
“In the industrial and agro-industrial sectors, four major projects were financed for a total of CFA11.1 billion (…). The first project involves the expansion of EGIN SA’s cement plant in Cameroon. The goal is to raise its production capacity from 200,000 to 500,000 tons per year, along with its storage capacity. This major project, valued at CFA19 billion, will produce high-quality cement at a competitive cost to meet Cameroon’s growing market demand,” the report stated.
While BDEAC did not specify the exact amount it invested in this project, its documents show this is the second consecutive financing for EGIN SA. In its 2017-2022 Strategic Plan, BDEAC had already approved in 2019, and confirmed in 2020, CFA3.5 billion for EGIN SA to help increase production capacity from 100,000 to 300,000 tons per year, responding to Cameroon’s growing cement needs.
With these successive production capacity upgrades, EGIN SA’s “Lion” brand 42.5 cement is likely to become more visible in hardware stores across Cameroon. Although production began along the Wouri River in 2017, according to the company’s promoters, the cement has remained relatively scarce in the local market.
This low visibility is mainly due to the plant’s modest production capacity compared to its competitors, including Cimencam (2.3 million tons, with a new line in Figuil), Dangote Cement (1.5 million tons), Cimaf (1.5 million tons after expanding its Douala plant), Medcem (600,000 tons), Mira Co (1.5 million tons with its new line launched in June 2022), and more recently Cimpor (1 million tons).
Since its inception in 2017, the EGIN SA cement project has benefited from Cameroon’s 2013 law on private investment incentives, modified in 2017. A convention was signed on August 29, 2017, between the project’s promoters and the Investment Promotion Agency (API). This public body is responsible for implementing the law, which offers tax and customs exemptions for periods ranging from 5 to 10 years during both installation and operational phases.
