South Africa: Trade, Industry and Competition On Constructing R500 Million Cement Grinding Plant At Bojanala Special Economic Zone

press release

A R500 Million Cement Grinding Plant to be Constructed at Bojanala Special Economic Zone

Shosholoza Cements (Pty) Ltd ("Shosholoza") will build, own and operate a R500 million compact cement grinding plant in the Bojanala Special Economic Zone (SEZ) in Mogwase, North-West producing cement products for sale to the surrounding market up to a 300km radius.

The Bojanala SEZ is a project management unit under the North West Development Corporation. The zone will be developed on 1 175 hectares including the Bodirelo Industrial Park and will focus largely on mineral beneficiation especially for platinum group metals, as well as manufacturing, including mining capital equipment supply, agro-processing and renewable energy.

Shosholoza is being advised by Alkebulan Ltd whose Executive Director, Ms Sylma du Plessis, confirmed the R500 million investment is the pledge which was made at the fifth South African Investment Conference that took place in April this year. She says the investment includes the cost of the plant and working capital.

"Given the high cost of transport in South Africa, the local market would welcome a high quality and competitively priced cement producer. Shosholoza hope to start construction as soon as the final funding is secured and should be operational in about two years," says Du Plessis.

"We have raised significant funds to date but are still looking for some funding which is critical to secure in order to be successful. One cannot rush investors in their decision making and we are working extremely hard to follow up and respond to due diligence enquiries and approach other potential investors," adds Du Plessis.

According to Mr Arshad Cassim, the Excutive Chairman of Shosholoza, even though the company is a start-up, the plan is to create 75 long-term employment opportunities.

"The new low carbon cement manufacturing technology will support the growing building and construction market in the North-West where we have identified a gap in the market. Due to the close proximity to some mines, Shosholoza Cements will also have access to some of the raw materials needed for manufacturing," he says.

In addition to the positive local economic impact of operating a cement plant and selling cement products in the area, Mr Cassim says Shosholoza is setting up a gender-based violence Non-Governmental Organisation (NGO) to support vulnerable victims of such violence. He says this will undoubtedly support the community.

Alkebulan is an African-focused financial advisory and structuring specialist in association with africapractice (https://africapractice.com/), and work primarily with companies with African operations and indigenous businesses to develop solutions that support the structuring and placement of equity, mezzanine finance instruments or debt as well as providing strategic advisory services.

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