Government discontinues cement imports licensing

GOVERNMENT has discontinued the issuance of cement import licenses to individuals and companies, as the country’s major cement manufacturers are producing adequate products of a combined 160 500 metric tonnes per month.

The production levels are adequate to meet local demand and the latest move is geared at boosting demand for local cement.

In October last year, the Government swiftly moved to curb the artificial shortage of cement, a component in construction as prices spiralled out of control.

A 50kg bag of cement, which was retailing at US$9 was being sold for as much as US$20. The artificial shortage was threatening to slow down the massive infrastructure development in progress.

USD: Image taken from Shutterstock

In response, the Government allowed companies or individuals to import up to five tonnes of cement without the requirement of an import licence.

The dispensation was up to December 31, 2023, but was extended after the expiry of the duration. Imports above the quantities require an import licence from the Ministry of Industry and Commerce. However, the permits did not apply to commercial imports.

The arrangement was jointly implemented with the Zimbabwe Revenue Authority. During the duration of the permits, the Ministry of Industry and Commerce issued 971 licenses totalling 337 776 metric tonnes, out of which 218 000 metric tonnes passed through the borders.

However, the local industry is now producing above-optimal levels, hence the discontinuation of the permits.

Giving an update on the cement market supply and demand situation during the post Cabinet media briefing on Tuesday, Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere, said there is now adequate cement on the market.

This followed a briefing to the Cabinet by the Minister of Industry and Commerce, Dr Sithembiso Nyoni, on the situation.

Dr Sithembiso Nyoni

“Cabinet advises that following the Cabinet decision to allow the temporary importation of cement in October 2023, the ministry issued 971 licenses totalling 337 776 metric tonnes, out of which 218 000 metric tonnes passed through the borders.

“The four major cement manufacturers in the country have an installed capacity of 2,6 million metric tonnes per annum, against a national demand of 1,6 million metric tonnes,” said Dr Muswere.

“Cabinet notes that the local industry is now producing above optimal levels. The four companies are producing a combined 160 500 metric tonnes per month against the installed capacity of 241 000 metric tonnes per month.

PPC Zimbabwe

“Depressed local demand has resulted in the companies stockpiling cement and reducing production. Cabinet advises the nation that there is now adequate cement on the market. Accordingly, the issuance of cement import licences is being discontinued in order to boost demand for local cement.”

Local major producers include PPC Zimbabwe, Khayah Cement and Sino Zimbabwe Cement.

The construction industry is experiencing a purple patch driven by public investment in infrastructure projects, private sector investment in residential and commercial projects, and the increasing demand for housing and other infrastructure in urban areas.-chroniclecl.zw