The ways that AfriSam creates concrete possibilities

An industry icon, AfriSam has been part of the construction landscape since 1934 through various evolutionary stages, with the current brand name introduced to the market in 2008. Those close to nine decades of growth have been based on concerted research and development, and an ability to respond to cyclical demand, says Richard Tomes, Sales and Marketing Executive, AfriSam.

As we know, South Africa’s economic fortunes are constantly being influenced by global outcomes, especially the constant escalation in diesel fuel prices. That impacts all levels of business and society and influences the current inflationary environment from a consumer and producer perspective,” says Tomes.

“However, we cannot control the financial or oil markets, so we need to focus on what we can fix, like putting an end to loadshedding, promoting a green economy, and ensuring that infrastructure spend remains a top priority for government – both in terms of new build and maintenance of existing assets. Our commitment in turn as AfriSam is to keep investing in the future of South Africa through our diverse

By actively mapping quarry rock type and quality, AfriSam’s technical experts ensure that blasted material is expertly paired with the design engineers’ requirements in terms of specific grading, shape and wearing properties

Since 1990, AfriSam has been able to reduce the volume of carbon dioxide emissions per tonne of cementitious material by 33% range of cement, aggregate and readymix solutions,” says Tomes.

Economic analysis

For a number of years now – and as a service to industry – AfriSam has hosted its annual Budget Breakdown Breakfast in February following the annual National Budget Speech by South Africa’s Minister of Finance. Since inception, AfriSam’s Budget Breakdown presentation has been led by Dr Azar Jammine, director and chief economist at Econometrix, a recognised expert whose insights are crucial for medium to long-term forecasting.

“Our most recent engagement with Dr Jammine in September 2023 shows that inflationary pressures, and the potential for further interest rate hikes remains on the cards. In response, buying patterns have been influenced, and we need to ensure that our solutions tie in with customer requirements, and pricing,” Tomes continues.

“During the initial lockdown period, for example, there was a huge surge in cement sales as the ‘work from home/hybrid’ model created an unprecedented demand for residential building extensions going into 2021. However, based on our analysis, we see an overall contraction in industry cement demand of around 18 to 20% in 2023 compared to 2022.”

“The traditional split between bulk and bag sales has also shifted. Instead of being 50/50, we’re now seeing around 2/3rds of our cement sales being channelled through retailers, and the remaining third sold in bulk form direct to contractors and concrete product manufacturers. It’s indicative of the slowdown in public sector spend on infrastructure, and mixed fortunes in the property sector. Either way, in tougher times we need to be even more efficient and effective as a producer to keep our customers competitive.”

Project pipeline

The mega projects, like Phase II of the Lesotho Highlands Water Project, hold great promise for AfriSam. For Phase I, which was completed in 2003 and inaugurated in 2004, Alpha Limited – AfriSam’s trading name at the time – supplied a major portion of the cement required – shipped from its Ulco plant in the Northern Cape via a direct rail line to Lesotho.

For Phase II, AfriSam envisages that 100 000 tonnes of cement a year will be required as the project ramps up with the construction of the Polihali Dam and transfer tunnel, the three main bridges to be built ahead of its impoundment, plus associated works.

In terms of other current major projects in South Africa, AfriSam is supplying road infrastructure developments that include the N3 Pietermaritzburg to Durban upgrade, the N7 upgrade outside Cape Town, as well as the R63 route from Fort Beaufort to Alice in the Eastern Cape.

Orders include the supply of aggregates and AfriSam Roadstab Cement for layer works and sub-base stabilisation, respectively. Allied to this is the supply of readymix concrete for ancillary works like bridges and culverts.

Within Gauteng – South Africa’s economic heartland – supply contracts for the property development market include the 5 Parks Boulevard Project in Oxford Parks, the

SA cement capacity

At present, the South Africa cement industry has a total capacity of between 18 and 20 million tonnes per annum (mtpa). However, current demand is sitting at between 12 and 13 mtpa. Despite this, South Africa remains an export destination for countries that include Vietnam, with annual cement import volumes hovering at around 1 mtpa.

CCSA alliance and industry compliance

Through industry body, Cement & Concrete SA – which AfriSam supports as one of the Partner Members – engagement is ongoing to secure some form of safeguard protection.

As part of the World Trade Organisation, South Africa acknowledges the importance of free and fair competition. However, in South Africa, there are additional commitments like the five-year rolling Social Labour Plan (SLP) component of the Mining Charter that local limestone and aggregate operations need to comply with.

Added to this is the BBBEE requirement, and South Africa’s Carbon tax. As Tomes points out, these are not requirements that cement importers need to comply with, so arguably that is not a fair trade arrangement. Plus, imports need to adhere to all local and international standards – and this may not always be the case, with downstream health and safety concerns for structures built using these materials.

By law, South African cement must be specified for local government funded public works. The same does not apply for private developments.

“The CCSA is the key industry body in championing excellence and technical education in our industry, and in ensuring we have a collective voice in liaising with government. Membership includes individuals and companies, and we strongly encourage all interested parties to join,” says Tomes.

Community Development Programme

From a Mining Charter perspective, AfriSam has a comprehensive Community Development Programme in place which demonstrates its commitment to corporate stewardship. These include community recreational areas, where previously derelict and dangerous areas have been turned into safe spaces to exercise, play and interact; the provision of a state-of-the-art science laboratory, as well as a computer lab for schools in the Northern Cape; the construction of an Early Childhood Centre

AfriSam’s e-experience platform, ClickToGo, is a first of its kind in the industry in Cape Town, and a Health Clinic near its Umlaas Road Quarry in KwaZulu-Natal; plus 18 houses built for disabled and childheaded households in Nigel, Gauteng.

Catering for the full industry spectrum

“Our customers represent the full spectrum of the market, from ‘bakkie builders’ to JSE-listed construction giants, architects, consulting engineers, and municipal engineers within SOEs and municipalities. For this reason, we tailor our product, technical advice and training solutions to match, including how products are sold and supplied,” says Tomes.

AfriSam’s Centre of Product Excellence (CPE) is the business hub for technical advice, customer training and expert consulting services in terms of fit-for-purpose product and/or mix design selection for specific projects. The AfriSam Roodepoort laboratory recently passed stringent SANAS recertification requirements aligned to international ISO/IEC 17025 management system standards. This makes it one of South Africa’s most specialised facilities for testing cement and concrete materials, as well as the proving of theoretical mix designs.

“For designers and contractors, it’s about finding the right balance in terms of performance while factoring in sustainability objectives and costs,” says Tomes. “Concrete roads, for example, have proven themselves time and again as highly durable structures with lower lifecycle costs compared to flexible pavements. Concrete roads are also greener in terms of reduced emissions.”

Within the township and emerging contractor market, language and literacy

AfriSam continues to invest in the communities surrounding its operations, such as the state-of-the-art science laboratory donated to the Dikgatlong School in the Northern Cape www.afrisam.com levels are taken into account, including packaging with easy-to-follow instructions. Another innovation is AfriSam’s launch of the Plan (a) campaign. This enables customers to build and progressively extend their own home overtime from an architect approved plan.

“There’s clearly a need for a highly credible platform where key segments of the housing market can be empowered with professional insights and tools,” says Tomes. In recognition, Plan (a) was shortlisted for a Sustainable Development Goals (SDG) Lion award for its positive contribution to the world.

ClickToGo

Another innovation that is adding major value is AfriSam’s ClickToGo service – a user-friendly e-commerce platform for 30-day and cash account customers, the majority of whom are contractors placing bulk orders for cement, aggregates and/or readymix. Customers can directly order from quotes, review their order history, access essential account documents and credit information, and track deliveries.

ClickToGo also enables cash account customers to apply for a credit facility directly through the platform. Additionally, 30-day account customers can now request credit limit increases online. To date more than 70% of AfriSam’s account customers are registered for the service in South Africa, with the possibility of extending the service to eSwatini and Lesotho where AfriSam has existing depots.

Eco products

Going green is an SDG imperative and in 2009 AfriSam was the first in industry to introduce a carbon dioxide rating system. In this respect, AfriSam has been able to reduce the volume of carbon dioxide emissions per tonne of cementitious material by around 33%. Another example is AfriSam’s readymix operations, where water is extensively recycled.

AfriSam is also a leading innovator in the field of cementitious extenders and the only producer of slagment – a waste product from the steel industry.

A consistently strong outlook

“The challenges for South Africa are there for all to see, but the momentum remains positive as the country rebounds – with the rest of the world – from a very tough Covid period. G7 and BRICS investors remain committed to the country’s sustained growth, and the anticipated outcome of the South African National Elections being concluded in a way that will provide the market with greater future policy certainty,” adds Tomes.

“Future growth will hinge increasingly on private sector infrastructure investment and in South Africa AfriSam is an enduring part of the current and future economic equation,” Tomes concludes.