Mamba Cemement

Banking group Nedbank Capital and the Bank of China in Johannesburg on Tuesday announced the raising of R1.1 billion debt capital to fund Mamba Cement, a new China entrant on the South African cement industry. According to Nedbank Capital, this is one of the first pure limited recourse project finance deals funded by Chinese entities on the African continent. In other words, the majority of funding comes from banks rather than shareholders. 

One of China’s largest cement manufacturers, the Jidong Development Group, holds a 51% stake in Mamba. Together with the China-Africa Development Fund and significant BEE player, Women Investment Portfolio Holdings Limited (WIPHOLD), it provided the equity required for the project.Nedbank Capital’s infrastructure, energy and telecommunications head Mike Peo said the construction had already started and the project was expected to be completed within 18-24 months. 

When completed, the Mamba Cement project will result in a brand new cement plant with a capacity of more than one million tonnes per annum located at an established limestone deposit near Northam in Limpopo Province. Once operational, Mamba Cement will produce and sell cement into the blended cements, readymix and construction industries across South Africa. 

Mamba’s inland plant will compete with Sephaku’s inland plants in Mpumalanga and North West. Competition within the local cement market is segmented by geography, given the costs of logistics. Mr Zhikun Qiu, Chief Executive Officer at Bank of China says the deal held particular appeal given the significant economic development potential it holds for southern Africa as a whole. 

Thavhani Mall

Meanwhile yesterday, a consortium of property developers featuring prominent player Flanagan & Gerard Property Investments and Thavhani Property Investment, are set to deliver a new R900m shopping centre in Thohoyandou, Limpopo’s Vhembe District Municipality.  

An announcement released yesterday said construction of the new Thohoyandou shopping centre, named Thavhani Mall, will begin in June and set to open in April 2016. 

This development is the brainchild of local businessman Khosi Ramovha TJ of Thavhani Property Investments who first had the vision for the mall eight years ago.