Government, cement producers partner to improve competitiveness
THE Government, through the Ministry of Industry and Commerce, is pursuing collaborations with cement manufacturers to improve the sector’s competitiveness, create employment and reduce cement imports.
Zimbabwe is losing approximately US$50 million to cement imports, which have claimed 25 percent of the domestic market share, stifling the growth of the local cement industry.
While local companies have invested heavily in their operations and contribute significantly to economic growth and development, imports pose significant competition to local procedures and funnel scarce foreign currency out of the country.
At some point, the Government granted import permits to address market shortages stemming from plant breakdowns and reduced output from scheduled plant maintenance.
Cement makers, however, say cheap imports continue to flood the market even though the permits issued by the authorities have long expired, signalling potential extensive smuggling of the product.
The Ministry of Industry and Commerce revealed on its X handle (former Twitter) that the ministry’s permanent secretary Dr Thomas Utete Wushe visited PPC South Africa Limited and discussed possibilities for collaboration to improve the competitiveness of the sector.
In South Africa, he met the PPC leadership led by group chairman Jabulani Moleketi, board member Nono Mkondo and group chief executive officer Matias Cardarelli.
“Discussions centred on issues of economic collaboration, including improving competitiveness in the cement industry with the aim to stabilise prices and save jobs.
“They also discussed reviving the Mabvuku-Tafara Community Share Ownership Trust (CSOT), established in 2013. The CSOT has the potential to transform lives,” the ministry said in the post.
Local cement producers say imports have taken up 25 percent of the domestic market share, which has resulted in a decline in their sales volumes.
In 2023, Zimbabwe’s cement sector was described as one of the most vibrant, notably because of the strong production capacity of key producers that include PPC Zimbabwe, Lafarge Zimbabwe (Now Khaya Cement), Sino-Cement and Diamond Cement.
The Ministry of Industry and Commerce, however, says the sector has made significant progress in modernising, driving industrialisation, accelerating job creation and anchoring several transformative projects that were completed and commissioned.
The projects include road and dam construction.
Local major producers have a combined capacity of about 2,6 million tonnes annually and have been described as key contributors to the success of Government projects. -chrocnile
