Holcim, a cement company from Switzerland, has decided to leave Nigeria citing unfavorable economic conditions under the current administration. The company, which owned 84% of Lafarge Africa (WAPCO.LG), sold its shares to China’s Huaxin Cement for a large amount of $1 billion.
Reports say the agreement should be completed by 2025, if it gets the necessary approvals. This decision is part of Holcim’s strategy to simplify its business and concentrate on fast-growing areas, like North America.
Holcim’s decision to exit Nigeria is linked to the country’s slow-growing economy, which worries both investors and businesses. The company’s exit is seen as a big setback for Nigeria’s economy, which is already facing many problems.
This development follows several other major companies leaving Nigeria, such as Pick n Pay, Microsoft Nigeria, Total Energies Nigeria, PZ Cussons Nigeria PLC, Kimberly-Clark Nigeria, and Diageo PLC. These exits have worried people about Nigeria’s business situation and its ability to bring in and keep foreign investment.
In a statement, Holcim emphasized its commitment to sustainable growth in key markets, creating more profitable products, and making wise investments in infrastructure. The company’s strong emphasis on environmental protection is evident in its recent acquisition of a stake in Sublime Systems, a U.S. technology company that specializes in producing low-carbon cement.
The Nigerian government has been urged to take proactive steps to tackle the country’s economic problems and make the business climate better to bring in and keep foreign investments.
