PPC Zimbabwe calls on government to protect local cement production

Zimbabwe’s largest cement producer, PPC Zimbabwe, has called on the government to pass legislation to protect domestically-produced cement from imports.

Last year, the government lifted a two-year import bank on some basic commodities, including cement, to reduce the shortages that drove the public into panic buying. This has had a negative impact on local cement producer competitiveness, according to PPC Zimbabwe’s Managing Director, Kelibone Masiyane.

“What really has rendered us uncompetitive initially was the opening of the flood gates and then pricing became another issue.

“Definitely the price of imported cement is much lower than ours and we cannot compete because of high cost of production,” Mr Masiyane said.

At the PPC Zimbabwe Bulawayo plant, a minimum of 100 bags of cement are being sold at RTGS$30/bag or US$7.50, according to Nehanda Radio. In addition, a quick poll by by Business Chronicle in Bulawayo has shown that most of the hardware shops do not have imported cement but locally-produced cement, which is selling for between RTGS$28 and RTGS$36 per 50kg. The price in US$ ranges between US$6.50 and US$8.