GOVERNMENT FUNDED PROJECTS TO USE LOCAL CEMENT ONLY

National Treasury has announced that all projects funded by government will have to make use of cement produced locally.

The prohibition of international cement producers will be enforced from 4 November.

MoneyWeb reports that the announcement resulted in shares in JSE-listed cement and building materials producer PPC surging by 8.98% on Monday to close at R5.34 a share, while shares in competitor Sephaku Holdings rose by 6% to close at R1.59 a share.

The CEO of Cement and Concrete SA (CCSA), Bryan Perrie, has welcomed the ruling by National Treasury advising all organs of state, including national, provincial, and local authorities as well as state-owned enterprises that only locally produced cement will be allowed for use.

“This is an important ruling to protect a sector vitally important for the national economy. Furthermore, it has come at the right time in view of the multi-billion rand infrastructure projects planned by the government over the next three years.”

This will mean a big loss for international importers as they will now only be able to cater for the public construction industry if there aren’t any state organs involved in the contract.

Image credit: Daily Maverick