Lafarge Africa’s chairman Mobolaji Balogun says that the company plans to cut its debts by 2020 before continuing with its expansion programme.
In an interview with Bloomberg he said that the cement producer wants reduce its leverage ratio to below 70% from over 100% at present.
The subsidiary of LafargeHolcim wants to take advantage of improvements in the Nigerian economy and a recovery in South Africa to grow its profits. Its total debt recently dropped to about US$600m. Lafarge Africa incurred debt to expand the production capacity at its Calabar cement plant and plans to add more production to plants in the southwest and the north of the country.