Strategic Industrial Policy for Sustainable Development in Africa: The Case of Cement Manufacturing

This research paper examines the role of vertical industrial policies in Africa, using the cement industries of Nigeria and Morocco as primary case studies to demonstrate how targeted government intervention can drive sustainable industrial growth and economic diversification.

• The author argues that industrialisation in Africa requires government-led industrial policies rather than a laissez-faire approach because market forces alone cannot overcome obstacles such as "market failures, high initial costs and risks, local coordination problems and intense global competition".
• Industrial policies are divided into horizontal policies, which provide "uniform support across various sectors", and vertical policies, which "focus on specific sectors, industries or even particular firms". The paper asserts that vertical policies are more pertinent for Africa as they allow for the development of competitive advantages and global market leadership.
• Nigeria successfully increased its domestic cement production from 2.07 million tons (MT) in 2002 to 22.25 MT in 2014, moving from importing 74.5% of its domestic consumption to producing 97% of it. This was achieved through a vertical policy that restricted import licences and quotas to those building domestic factories, alongside VAT and custom duty waivers.
• Dangote Cement emerged as a regional leader following Nigeria's industrial policy, reporting revenues exceeding US$3.5 billion as of 2022. The company has a total African production capacity of 51.6 MTa, including an annual capacity of 32.25 MTa in Nigeria alone.
• Morocco's Ciments de l'Atlas (CIMAT) utilized a strategy of "direct backward integration" and government procurement. After being awarded a US$1 billion state contract for housing in 2005, the company established two factories with a combined capacity of 3.2 MT through a government investment agreement.
• The Moroccan company Ciments de l’Afrique (CIMAF) expanded its grinding and bagging operations across Sub-Saharan Africa between 2013 and 2016, targeting Côte d’Ivoire, Guinea Conakry, Cameroon, Burkina Faso, Gabon, Republic of Congo, Ghana, Mali, Mauritania, Guinea-Bissau, and Chad, as well as opening a 0.6 MTa plant in Le Havre, France.
• The paper warns that replicating the cement industry's policy model in other sectors can fail if the sector's unique requirements are ignored. Examples include Nigeria's Sugar Master Plan and tomato paste policy, which struggled due to "coordination problems at the raw material level" and the complexity of coordinating small-scale producers.

APA

Odijie, M. E. (2024). Strategic Industrial Policy for Sustainable Development in Africa: The Case of Cement Manufacturing. Africa Policy Research Institute. https://afripoli.org/strategic-industrial-policy-for-sustainable-development-in-africa-the-case-of-cement-manufacturing

Chicago

Odijie, Michael Ehis. Strategic Industrial Policy for Sustainable Development in Africa: The Case of Cement Manufacturing. Africa Policy Research Institute, 2024. https://afripoli.org/strategic-industrial-policy-for-sustainable-development-in-africa-the-case-of-cement-manufacturing.

Wikipedia

{{cite report |last1=Odijie |first1=Michael Ehis |title=Strategic Industrial Policy for Sustainable Development in Africa: The Case of Cement Manufacturing |publisher=Africa Policy Research Institute |date=6 August 2024 |url=https://afripoli.org/strategic-industrial-policy-for-sustainable-development-in-africa-the-case-of-cement-manufacturing |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{odijie2024strategic, author = {Odijie, Michael Ehis}, title = {{Strategic Industrial Policy for Sustainable Development in Africa: The Case of Cement Manufacturing}}, institution = {Africa Policy Research Institute}, year = {2024}, month = aug, url = {https://afripoli.org/strategic-industrial-policy-for-sustainable-development-in-africa-the-case-of-cement-manufacturing}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }