Khayah Cement cites construction boom as an opportunity for growth

Khayah Cement, formerly known as Lafarge Cement Zimbabwe, has forecast that the cement sector is set to grow following a boom in the construction industry, driven by investments in infrastructure development by the government and private entities. The company cited this boom in construction as the cause of increased demand for cement in Zimbabwe.

Government incentives and private investments in infrastructure have played a key role in the heightened demand for cement in the country. The projects include roads, bridges, housing and commercial developments, all of which require large amounts of cement.

Kumbirayi Katsande, chair of Khayah Cement's board, said the company is staking its growth prospects on positive economic activity in the agriculture sector. Mr Katsande stated, “Encouraging signs are being observed in the individual household sector and Government-funded infrastructure projects. There is also higher economic activity in the agricultural sector, which is being spurred by Government-driven initiatives.” He added, “The company is uniquely positioned to support the agricultural sector through its dry mortar products, which include agricultural lime.”

Mr Katsande said the company welcomes efforts by the Zimbabwean government and regulatory bodies to stabilise the wider economic environment and maintain the viability of the cement industry. He suggested regulations on cement imports, inflation control, reliability of electricity supply and an improvement in the global economy are likely to be major factors in the company’s performance.

He added that cheap imported cement posed a serious threat to the domestic market, which has sufficient capacity to meet national demand. The company is engaging with the regulatory authorities in an effort to secure the required support. He announced that Khayah’s directors are pleased with the uptick in production, sales,and profitability despite challenges such as power shortages.

Then known as Lafarge Cement Zimbabwe, Khayah resumed production of cement at its two mills in February 2022, following a 2021 incident in which the roof over both mills collapsed. In the 2H22 the company commissioned the vertical cement mill (VCM) and decommissioned ‘Mill One’, which had the smallest capacity.

The VCM took the company’s milling capacity from 0.5Mta to 1Mta and strengthened its ability to supply high-quality cement as well as reducing production costs. In December 2022, a local consortium acquired a 76.4 per cent stake in the business, which was previously held by Associated International Cement Ltd. Following this, the company began its rebranding efforts in line with the change in ownership.