The claims against Lafarge’s wholly owned subsidiary have been resolved just as the southern Africa cement market has reported an upsurge in sales by volume. This increase has been buoyed by the construction boom in Zimbabwe as well as increasing demand in Mozambique and Angola, which are undergoing an expansion of physical infrastructure.

In January, year-on-year sales went up 22%, to 779,003 tonnes, according to PPC. But the company has said that, in South Africa, unlike her neighbors, demand for cement was low, especially after the World Cup construction boom; last year, it recorded “excess production capacity, which made for competitive cement pricing,” according to PPC.

“Regulated price increases on key inputs, such as electricity and fuel, made it challenging to contain our costs,” said Paul Stuiver, PPC’s CEO.

In a statement, Lafarge Industries South Africa says it has agreed to a settlement with the Competition Commission relating to historical market sharing agreements in the cement market in South Africa.

“This decision was based on investigations conducted by Lafarge and the Competition Commission as well as the desire to find a resolution to a dispute that would otherwise have been long and costly,” according to Lafarge’s communications manager, Charlene Lamb, in an e-mail response. “Lafarge is focused on competing in a fair and robust market where it can provide its customers excellent products and services.”