OSHO regards Sub Sahara Africa is one of the most attractive regions from a growth perspective in the global cement industry. The barriers to entry are high namely scarcity of limestone reserves, understanding the local cultures, complex logistics and strong relations with unions.
Osho aspires to be a significant force in the cement manufacturing space in Africa. Osho Cement (Pty) Ltd accordingly has a aggressive strategy in place for setting up new capacities. The strategy aims to take advantage of historical geographic cement monopolies to provide the markets with feasible alternatives to the current products on offer. As a first step in this strategy we have identified 6 geographical locations in Southern Africa to build cement grinding plants. Land has been tied up for 2 of the plants, and the necessary approval processes for the construction of these facilities are under way. The first grinding plant is expected to be commissioned during first quarter of CY2014,
Osho has also conceived a clinkerisation facility in Southern Africa which would eventually supply clinker to the grinding plants. The Group has been awarded licenses for limestone in Mozambique, Madagascar and South Africa and is eyeing acquisition opportunities in other African countries.