PPC Zimbabwe has warned that continued cement imports could cost the country US$50m annually in scarce foreign currency. The company's Managing Director, Albert Sigei, highlighted the influx of smuggled cement, despite the discontinuation of import permits in March 2024 when local production improved.
The local cement industry, comprising PPC Zimbabwe, Khayah Cement, and Sino-Zimbabwe Cement Co, has an installed grinding capacity exceeding 3Mta against a demand of 1.8Mta. However, imports of 35,000-45,000tpm undermine the local market, with domestic plants operating at only 70 per cent capacity.
PPC Zimbabwe operates two plants, each with 700,000tpa capacity, in Harare and Bulawayo. Both face challenges from high energy, transport and labour costs. First-half 2024 revenues fell nine per cent YoY, largely due to imports. PPC has implemented cost-saving measures to recover profitability by the financial year's end.
These challenges underscore the need for stricter import controls and policy support to safeguard the viability of Zimbabwe's cement industry and its broader economic contributions.
