In 2016 the Zimbabwean government introduced a 25 per cent duty on every 100t of imported cement to discourage cheap imports. However, according to PPC Zimbabwe, imports continue to enter the country.
“In addition to liquidity challenges, we continue to face pressure from cheap imports. Government has tried to assist by introducing duty on imported cement, but the reality on the ground is that imports continue to pour in, particularly from Zambia,” PPC Zimbabwe Managing Director, Kelibone Masiyane, said.
“The high cost of manufacturing in Zimbabwe needs urgent attention, if the country is to remain competitive,” he added. Other countries exporting cement to Zimbabwe include South Africa, Mozambique and Botswana.
The Cement and Concrete Institute of Zimbabwe presented the Ministry of Industry and Commerce with a position paper lobbying for bans on imported cement. Other measures included a protection tariff to equate the landed price of imported cement to the cost of the local product (US$50/t cement), granting of import licences to local producers, cancellation or review of all issued permits that are circulating in the country (estimated at 5000tpm or five per cent total demand) and lowering duty on raw materials.
Despite all this, PPC Zimbabwe remains confident that the economy will turn around. “There are a number of infrastructural projects on the cards that we believe will take off this year and unlock our economy,” Mr Masiyane said.
The company doubled its cement production capacity to 1.4Mta after commissioning its US$85m plant in Harare last year. Domestic demand is estimated at 1.17Mt.
