CIMBAMA Cement Plant Construction - Commune of Dio-Gare

Project Description

The CIMBAMA Cement Plant project involves the construction of an integrated cement production facility in the Commune of Dio-Gare, Republic of Mali, with an annual production capacity of 500,000 tonnes. The total investment is XOF 19,971,036,954 (approximately USD 35.66 million). The project is promoted by CIMBAMA, a Malian industrial company, with the feasibility study prepared by AGI AFRIQUE SA in July 2023. MARKET CONTEXT: Mali's cement market recorded growth of 5% in 2019, reaching nearly three million tonnes. National cement production only covers 42% of needs, with the market experiencing annual growth of around 5%. Local production increased its market share from 28% in 2018 to 41% in 2019, injecting 1,135,000 tonnes into the market (a 51% year-over-year increase). Three production companies currently operate in Mali: Diamond Cement (1 million tonnes/year capacity, 90% controlled by Indian group Wacem SA), Ciments de l'Afrique/Cimaf (500,000 tonnes/year, expandable to 1 million, Moroccan group), and Ciments et Matériaux du Mali (95% subsidiary of Senegalese Sococim, targeting 1 million tonnes/year). Two additional plants are being set up: S&S Industrie (400,000 tonnes/year) and Ciment du Sahel (4 million tonnes/year at BEMA, Nioro du Sahel). TECHNICAL SCOPE: The project covers plant construction, procurement of heavy machinery and equipment, and deployment of modern clinker production processes. The cement production process involves raw material extraction, grinding, clinker production, and final cement milling. COMMERCIAL STRATEGY: Focuses on replacing cement imports with locally manufactured high-quality cement, targeting the growing domestic construction and infrastructure market. Mali's national development strategy (CREDD 2019-2023) and the construction of road infrastructure, housing, public infrastructure, and modern health centers are driving demand. FINANCIAL ANALYSIS: The feasibility study includes detailed CAPEX assessment, financing plan, operating expenses, forecast revenues and financial statements, and investment appraisal including NPV, IRR, and profitability analysis, along with sensitivity analysis for currency and market fluctuations. SOCIO-ECONOMIC IMPACT: The project contributes to national infrastructure development, job creation, import substitution, reduced dependency on foreign cement suppliers, and socio-economic growth in the region. It aligns with Mali's Strategic Framework for Economic Recovery and Sustainable Development (CREDD 2019-2023) and the national strategy to accelerate structural transformation, promote balanced territorial development, improve youth skills, and mobilize domestic resources.