PPC and AfriSam are South Africa's two largest cement producers. This analysis examines their CBAM exposure for any EU-bound cement and clinker exports.
PPC Ltd and AfriSam are South Africa's two largest cement producers, together accounting for approximately 55% of the country's cement production capacity. While both companies primarily serve the South African and sub-Saharan African markets, any cement or clinker exported to EU markets is subject to CBAM.
Production capacity: ~6.5 Mt/year (South Africa + rest of Africa)
Key South African plants:
CBAM exposure: PPC's primary markets are South Africa, Zimbabwe, Botswana, and Rwanda. EU exports are minimal. However, PPC's clinker production at coastal plants (De Hoek) could potentially be exported to EU markets.
Production capacity: ~4.0 Mt/year
Key South African plants:
CBAM exposure: Similar to PPC, AfriSam's primary markets are domestic and regional. EU exports are not a significant part of their business model.
South African cement producers have embedded emissions broadly in line with the EU default:
| Component | Typical SA Cement |
|---|---|
| Calcination (limestone) | 0.53 tCO₂/t |
| Fuel combustion (kiln) | 0.25 tCO₂/t |
| Electricity (Eskom grid) | 0.05 tCO₂/t |
| Total | 0.83 tCO₂/t |
The EU default value is 0.87 tCO₂/t (with 10% markup), suggesting that SA cement producers' actual emissions are close to the default. The choice between actual and default values is therefore less financially significant than for aluminium.
An interesting CBAM dynamic for South African cement producers is the potential for clinker export. Clinker can be ground into cement at the destination, reducing transport costs compared to shipping finished cement. However, clinker has higher embedded emissions per tonne than finished cement, resulting in higher CBAM liability per tonne.
The economics of clinker vs. cement export to EU markets need to account for:
Use the CBAM Calculator [blocked] to compare cement vs. clinker CBAM liability for your specific situation.