Calls for new capacity in Zimbabwe amid demand surge

Lafarge Cement Zimbabwe’s commercial director, Edith Matekaire, has called for new investments in production capacity to ensure the country does not run out of supply by 2020.

"We know we talk about all the macroeconomic issues like the cost of energy and cost of labour, but I want to say that beyond 2020, we will begin to run out of capacity as an industry, and I have no doubt that it is time to act now," Matekaire said.

Speaking at the Confederation of Zimbabwe Industries annual congress, Ms Matekaire noted that now is the time to invest.

"We can see that our projections are in real demand. We will need an additional capacity, and today I must say as Lafarge we have a greenlight on new investment, but the issue has always been how do you fund that investment in terms of paying back.

"Considering that it will take three years for a fully-integrated cement plant to be put in place and one-and-a-half years for a grinding station to be put in place, it really shows that it’s time for us to act now in order to invest ahead of demand," said Ms Matekaire.

The Cement and Concrete Institute of Zimbabwe recently stated that national cement demand surged since the 2H17, partially driven by construction activity.