Chronicle Editor
Senior Business Reporter
THE Parliamentary Portfolio Committee on Industry and Commerce has embarked on a fact-finding tour of the country’s cement producers to get an appreciation of their processes and challenges.
The tour comes at a time when cement producers have recently expressed concern over the influx of cheap imports and costs of doing business, which tend to cripple domestic product competitiveness.
The committee started the tour on Monday with a visit to Lafarge Cement Zimbabwe in Harare and will be at Kwekwe-based Diamond Cement today and round off the tour at the Bulawayo-based PPC Zimbabwe on Wednesday.
Committee chair, Mr Joshua Sacco, said the visit was part of their oversight role as they seek to get an appreciation of the cement production process.
“Among the aims of the tour is to get an appreciation of the cement production processes, look at issues around pricing of cement and energy supply,” he said.
“On pricing, there have been concerns that our cement is the highest in the region and we seek to establish the cost build ups to that.
“Also, we seek to know the capacity utilisation levels and whether the cement firms can meet the demand in the market.
“We would then compile a report to be presented to Parliament and then lobby the Government through the Ministry of Industry and Commerce to intervene where necessary.”
Mr Sacco said at Lafarge Cement they were shown a dry mortar plant, which is a new innovation in the country that would aid in boosting production levels.
The visit follows that of Political Actors Dialogue (Polad) members last week, which saw the economic committee touring selected industries in Bulawayo, that included cement producer PPC Zimbabwe, United Refineries and Bit Bags.
The committee said PPC has higher capacity to meet demand for cement in the country but was hindered by the influx of cheap imports.
The country has the capacity to produce 2,6 million tons of cement per annum with demand hovering around 1,5 to 1,6 million tons per annum.
Lafarge Zimbabwe and PPC control more than 70 percent of the domestic market. The committee also toured Hwange Colliery Company.
Demand for cement has been strong over the past two years, largely driven by various Government infrastructure projects including the construction of roads, dams and schools as well as housing development mainly funded by diaspora remittances.
The Government is spending billions of dollars on infrastructure development including roads and dams. In line with its devolution agenda, more funds have been released to finance the construction of schools and hospitals in all provinces.
On the other hand, private sector development projects have been on a rise especially investment in commercial structures. House building has also given momentum to the sector, largely driven by diaspora funds, according to industry players.
However, cement producers have in the past called for measures to safeguard the viability of the local cement industry against the crippling impact of imported cement. Zimbabwe remains a destination for cheap and substandard cement products, which are finding their way through the country’s borders as well as via smuggling.
Online Reporter