* Deal is rare S.African investment into Ethiopia
* S.African builders looking elswewhere as growth slows
(Adds details)
JOHANNESBURG, July 25 (Reuters) – South Africa’s Pretoria
Portland Cement and a state investment body will
together pay $21 million for almost half of Ethiopia’s Habesha
Cement Share Company, targeting demand for infrastructure in one
of Africa’s fastest growing countries.
The deal marks a rare investment by a South African company
into Ethiopia, still a relatively closed economy.
PPC said in a statement on Wednesday it will pay $12 million
in cash for a 27 percent stake in Habesha, while South Africa’s
Industrial Development Corporation will pay $9 million for
another 20 percent.
Habesha, which has also secured $86 million in debt finance
from the Development Bank of Ethiopia, is building a $130
million cement plant with an annual capacity of 1.4 million
tonnes.
The deal is PPC’s first investment in Ethiopia and east
Africa. The company has said it aims to make as much as 50
percent of its revenue outside South Africa in the next few
years.
Faced with slower growth and an industry-wide slump at home,
South African construction companies are increasingly looking
north for growth opportunities.
Home to 85 million people, Ethiopia is the second-most
populous country in sub-Saharan Africa.
Shares of PPC were up 0.4 percent at 24.69 rand.
(Reporting by David Dolan)
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