Online Reporter
Sikhulekelani Moyo and Rutendo Nyeve, Zimpapers Reporters
STAKEHOLDERS have called upon local cement companies to improve production efficiencies and capacity to meet growing domestic demand, with emphasis on the need to rope in new players to boost supplies.
This follows recent concerns over cement shortages in the market, which have pushed the product price up by nearly 40 percent while major projects are said to be slowing down due to local supply gaps.
This has prompted the Government to immediately scrap restrictions on the importation of cement to address domestic market shortages and curtail the rapidly rising prices.
Despite Zimbabwe’s cement industry having an installed production capacity of about 2,6 million tonnes annually, output has been volatile as major producers grapple with operational setbacks, including ageing equipment.
Deputy Minister of Industry and Commerce, Raj Modi, has said the Government is aware of the issue and urgent measures are being taken to address it.
“I am aware of the problem that we are facing at the moment in the market. I also went to buy cement in Bulawayo, and they said US$17.
“We discussed this issue with my chief director, and they told me that there is a backlog at the border. So, that is what is delaying them. Some people imported the cement, but it is still at the border; they have not yet been cleared,” said Deputy Minister Modi.
“At the moment, there is a shortage of clinker used for the manufacturing of the cement and there is also a breakdown in the machinery. So, at the moment, only PPC is working and the demand is so high that PPC cannot supply enough to the market.”
Deputy Minister Modi assured the nation that import permits had been issued to alleviate the shortage.
Zimbabwe Builders and Contractors Association (ZBCA) president Dr Tinashe Manzungu said the product shortage and price increase could delay major projects, thereby, hindering the country from meeting some of the National Development Strategy 1 (NDS1) targets.
“We appreciate the efforts by the African billionaire (Aliko Dangote) who was in Zimbabwe last week to get into cement production. It comes at the right time,” he said. “The production line proposal will see more players coming into the market to supply cement,” said Dr Manzungu.
“We urge other organisations or investors that are like-minded to come into this game as the journey to 2030 is still quite big and high hopes and expectations by the nation that things can actually be very positive, and for this to be positive, we need more players in this game.
“The country has not gained so much in terms of production of cement, but has gained so much in terms of usage of the product, and this leaves a gap that needs to be filled in with more cement-producing companies by way of new entities coming on board, or old institutions or old companies upgrading or scaling up.”
Cement prices in Zimbabwe have surged by 42 percent over the past two months, driven by a combination of factors, including robust demand from an “unprecedented” construction boom and constrained local and import supply.
In Bulawayo, most hardware shops and cement retailers have run out of stock, citing limited supplies amid growing demand for both individual and corporate projects.
Prices have climbed to around US$17 from US$12 per 50kg bag, according to a survey by this publication.
The sharp increase has been attributed to soaring demand, the exhaustion of import quotas by some traders, and production challenges among local manufacturers.
Dr Manzungu said this shows a red flag in terms of the production capacity due to the lack or shortage of cement that the country has been experiencing.“The effect is so deterrent to the NDS1 plans and aspirations, as we are aware that we are just concluding the blueprint,” said Dr Manzungu.
“So, the success of the NDS2, which begins in 2026, is going to be probably hampered if we do not take action as of now.
“The other implication is to say the budget allocations or budgets for such projects, whether they are private or public projects, by way of shortage of cement, it prolongs the time frames of the projects, and when that happens, associated costs on delays also go up.”
While Zimbabwe primarily imports cement from neighbouring Zambia, these inflows have dropped sharply as major importers exhausted their allotted quotas, effectively squeezing external supply just as domestic demand accelerated. Locally, the situation remains precarious.
Khayah Cement, in particular, has faced financial distress and production stoppages, which have further reduced local stock.
The market remains tight, putting pressure on large infrastructure projects and individual builders alike.
Relief, however, may be on the horizon as ongoing investments aim to boost capacity. The new Huaxin cement plant in Chegutu, expected to come online in the first quarter of next year, is projected to add 800 000 tonnes per year, once fully operational.
Dr Manzungu said procuring entities might then suffer the scourge of paying more than expected. In other circumstances, if not further approved due to a budget overrun, it can lead to work stoppages, which in turn hampers not only quality but also outcomes against the budgeted timelines.
“This is the effect of cement shortages, and as a stop-gap measure, we expect to have more of our supply chain organisations getting licences to import cement to the country,” added Dr Manzungu.
