Online Reporter
Remember Deketeke
KHAYAH CEMENT has secured a US$60 million rescue package from East African cement giant Hima Cement after creditors and shareholders unanimously approved a corporate recovery plan, paving the way for debt settlement, plant refurbishment and a return to sustainable operations.
The resolution was reached last week at a meeting of creditors and shareholders following circulation of the business plan earlier this month.
Khayah Cement’s corporate rescue practitioner Mr Balisa Mbano told The Sunday Mail that the approval marked a turning point for the company, long weighed down by debt and operational inefficiencies.
“The positive is that all creditors will be paid down in a compromise amount and settled immediately,” he said during a site visit.
“This gives the company immediate relief and the breathing space to focus on growth rather than liabilities.”
The deal brings in Hima Cement, which operates mainly in Uganda, as both an investor and vendor in Khayah’s turnaround programme.
“The investor will inject working capital, expedite the refurbishment of the kiln and support sustainable operations,” Mr Mbano said.
“In the short term, Khayah Cement will stop all imports of clinker and instead produce on site, guaranteeing stability in our supplies.”
The phased injection of around US$60 million, he added, would cover both working capital and capital expenditure, positioning Khayah Cement not only for recovery but also for growth.
“This is a plus or minus US$60 million deal,” he said. “It is not only a rescue but a growth opportunity that will have a wider economic impact, especially in terms of local supply chains and employment.”
On prospects of relisting on the Zimbabwe Stock Exchange (ZSE) or the Victoria Falls Stock Exchange (VFEX), Mr Mbano said this was not currently on the agenda.
“The focus right now is on stabilisation and delivery. Once they settle in and the company strengthens over the next five years, the new shareholders may then consider either the ZSE or VFEX as platforms for further expansion.”
The rescue plan is expected to be fully implemented within six months, with completion targeted for March 2026.
“We have an ultimate deadline of six months,” he said.
“From now until the end of the fiscal term, around March, we should be in a position to confirm that everything is wrapped up.”
Khayah Cement, formerly known as Lafarge Cement Zimbabwe, is one of the country’s oldest and most established cement manufacturers.
The company operates a cement plant in Harare with a production capacity of over 450 000 tonnes per year and supplies cement to both domestic and regional markets.
Over the past few years, Khayah has faced mounting challenges, including foreign currency shortages, rising operational costs and equipment breakdowns, particularly at its kiln, which severely disrupted production.
The company was placed under corporate rescue in 2022 to protect it from creditors while a turnaround strategy was pursued.
Despite these setbacks, Khayah Cement remains a strategic player in Zimbabwe’s construction sector, supplying a wide range of cement products for housing, commercial and infrastructure projects.
