Cement companies resume operations: Public urged to avoid panic buying

Judith Phiri Zimpapers Business Hub

TWO of the country’s major cement producers — Sino Zimbabwe and PPC Zimbabwe — have resumed operations following scheduled maintenance work and plant breakdown repairs, a development expected to ease domestic shortages and stabilise rapidly rising prices.

The recent supply constraints saw cement prices soaring by up to 40 percent in the past two months, with a standard 50kg bag shooting from US$10 to as high as US$17. In response, Government moved to temporarily scrap restrictions on cement imports to cushion the market.

In a statement yesterday, the Ministry of Industry and Commerce confirmed that both companies were now back in production.

“It is pleasing to note that Sino Zimbabwe has since resumed production and players in the industry have started picking up the product. PPC Zimbabwe also indicated that their Bulawayo plant, which had broken down, has since been repaired and now they are in production,” read part of the statement.

The Ministry added that cement producers had not increased their prices, urging the public to refrain from panic buying, which could result in unnecessary losses.

To address the shortages and stabilise prices, Government has increased the issuance of import licences. Since the start of October 2025, a total of 145 000 metric tonnes of cement import permits have been issued.

“The measure is starting to bear fruits and we are advised by a number of players who are importing that the product has started arriving. We wish to advise also that the Zimbabwe Revenue Authority (ZIMRA) is carrying out a loss control programme of following up on cement importers who did not pay surtax and hence the clearance of trucks at Chirundu is still quite slow,” said the Ministry.

Looking ahead, the Ministry said medium to long-term interventions were expected to place Zimbabwe on a cement production surplus trajectory before the end of 2026, with major investments set to come on stream.

Another significant investment is projected to begin production towards the end of 2026 into 2027, a move expected to almost double current national output and open opportunities for regional exports.

The Ministry outlined that requirements for obtaining cement import licences remain unchanged — including an application letter, proforma invoice, valid ZIMRA tax clearance, current Standard Development Fund receipt, CR14, Certificate of Incorporation (CR6) and a licence fee of US$100 payable in ZiG equivalent.

The Ministry noted that the construction boom under the Second Republic — spanning both public and private projects — has nearly tripled cement demand compared to 2017, reflecting strong economic growth. This surge has attracted significant investment into the sector, with one new entrant beginning operations at the end of 2024 and two more expected to launch production in Hwange during 2025.

However, current output still falls short of the fast-growing demand. Compounding the situation are delays in Zambia, where heightened local demand has slowed the loading of trucks supplying nearly 90 percent of Zimbabwe’s imported cement.

“It is disturbing to note the speculative and criminal nature by some individuals and businesses who are taking advantage of this temporary setback to fleece our people, charging exorbitant and ridiculous prices. This behaviour should not be tolerated and we appeal to such individuals to uphold good business ethics and principles,” the Ministry said.

 

 

 

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