Displaying items by tag: Zimbabwe

Zimbabwe relaxed import rules on cement this week in a bid to bring down prices. This follows a high-profile visit earlier in November 2025 by Aliko Dangote with US$1bn investment plans including a new cement plant. Here’s what’s been happening.

Deputy Minister of Industry and Commerce, Raj Modi, announced this week that the government was aware of price issues and was taking measures to fix it. This has included issuing licences to import around 0.15Mt of cement from October 2025 onwards. He commented that there was a backlog of cement at the border. He noted that the country has a shortage of clinker with only PPC currently manufacturing it. Local media reports that the price of cement rose by 42% in October and November 2025. This has been attributed to a local construction boom, limited local production, and constrained imports. Subsequently, vendors have run out of stock.

South Africa-based PPC has certainly done well out of the situation. Its revenue for the six months to September 2025 rose by 23% year-on-year from US$89.4m to US$110m. This was attributed to a 25% increase in sales volumes. It was also achieved despite a prolonged shutdown period at its integrated Colleen Baw plant in the first quarter of its financial year. Earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 11% to US$25.9m from US$23.3m.

Import bans on cement in Zimbabwe have come and gone over the last couple of decades alongside the country’s wider economic issues in response to international sanctions. Zimbabwe is land-locked but it also shares a border with South Africa, a larger cement producer. The government implemented an import ban in 2021, prices have surged periodically and remedial actions, such as large-scale licence approvals, have been taken on occasion. An additional 30% surcharge on cement imports was introduced in May 2025.

The country clearly needs more local producers and Nigeria’s Aliko Dangote flew to the rescue on 12 November 2025 to sign a memorandum of understanding with President Emmerson Mnangagwa. Details are light on the US$1bn investment deal, but it includes a 1.5Mt/yr cement plant, power generation and a 2000km fuel pipeline from Walvis Bay in Namibia that will reportedly run through Botswana. Dangote was previously in talks with the Mugabe regime in the mid-2010s but talks did not progress.

However, other plant projects are already on the way. In late October 2025 local press reported that the China-based 0.8Mt.yr Chegutu cement plant was over half-way complete. Production at the site is scheduled to start in early 2026. The WIH-Zim Cement plant is also being built at Magunje. This one has reported cement and clinker production capacities of 1.2Mt/yr and 1.8Mt/yr. Unfortunately, the local Environmental Management Agency (EMA) ordered the project to stop construction in August 2025 after inspectors found violations of Environmental Impact Assessment (EIA) conditions, including failure to compensate displaced households. Further legal action has followed. This project is backed by Labenmon Investments, another China-based investment firm. Unfortunately, that company also popped up in the sector news this week in connection to a bribery scandal connected to an apparently separate grinding plant project in Bulawayo, according to the Herald newspaper. Two other unconnected and smaller grinding plants, JainQiang Cement and Zimsonc Industries, also reportedly started production making blended products in Hwange in mid-2025.

Of the existing cement producers, Khayah Cement entered into ‘corporate rescue proceedings’ in late December 2024, blaming international economic sanctions for causing an ‘untenable’ business environment. A public tendering process to find investors was announced by the former Lafarge subsidiary in May 2025. A US$60m rescue package from Uganda-based Hima Cement was approved by creditors and shareholders in September 2025. This includes refurbishing the company’s Harare plant. The country’s other local clinker manufacturer, Sino Zimbabwe, reportedly also restarted production in late November 2025.

The general economy in Zimbabwe was on track for a forecast 6% annual growth in July 2025 due to the agricultural sector and strong commodity prices. The International Monetary Fund (IMF) reiterated this view in November 2025, singling out easing inflation amid exchange rate stability [LINK]. Quite possibly this has also benefitted the construction sector too, leading to the current issues with imports. In this setting, Aliko Dangote’s investment plans are a serious vote of confidence for both the cement sector and the wider business environment.

Zimbabwe: The government has relaxed regulations so that more cement can be imported into Zimbabwe. This aims to address cement shortages experienced recently due to a national construction boom, according to the Herald Zimbabwe newspaper. Minister of Skills Audit and Development, Professor Paul Mavima, said that cement prices will also decline as a result.

Historically, construction activity peaks between April and November, just ahead of the country’s rainy season, but demand in 2025, driven by both home building and commercial construction, has been described as ‘incomparable’ to previous cycles by dealers.
Zimbabwe’s cement industry has an installed production capacity of about 2.6Mt/yr, although output has been inconsistent due to ageing equipment and fuel shortages. While the country primarily imports cement from neighbouring Zambia, imports have dropped sharply, squeezing external supply just as domestic need accelerated.

Zimbabwe: Bulawayo City Council has cancelled Labenmon Investments’ lease for the construction of a cement grinding plant at Umvumila Industrial Park after the China-based company failed to finalise the lease signing process, according to The Chronicle newspaper. The lease was awarded in October 2024 but the decision follows controversy around the project. Deputy Mayor Edwin Ndlovu and finance and development committee chairperson councillor Mpumelelo Moyo were previously arrested by the Anti-Corruption Commission in an alleged bribery case.

Director of town planning Wisdom Siziba said “This report sought to cancel the offer of industrial stands 15895 and 15896 Umvumila for Labenmon Investments after council on 2 October 2024 had resolved that stands 15895 and 15896 be leased out to Labenmon Investments for an initial period of five years subject to review. The applicant indicated that they would use the stand for industrial purposes, establishing a cement mixing plant, at a monthly rental of US$450 and US$700 respectively (exclusive of VAT). The applicant had accepted the offer but did not finalise the lease signing process. Several reminders were sent to the applicant to no avail. It was against this backdrop that the department wished to have the offer cancelled and the stand repossessed.”

In October 2024, it was alleged that the two officials had been arrested for demanding a US$20,000 bribe from Labenmon Investments in exchange for approving 5.6 hectares of land for the grinding plant. The case saw the Deputy Mayor acquitted after a full trial. Councillor Moyo was found guilty and sentenced to 18 months' imprisonment. In October 2025, he was granted US$200 bail by the High Court pending appeal.

Zimbabwe: PPC’s cement sales rose by 22% year-on-year during the four months to 31 July 2025 as demand surged, boosted by a 30% tariff on imports introduced in May 2025. The tariff was introduced through Statutory Instrument 50A of 2025, under a plan to bolster local production by cutting reliance on imports, and to support domestic manufacturers, according to The Chronicle newspaper.

In a statement accompanying financial results for the period, PPC said “Cement sales volumes in Zimbabwe increased by 22% in the current period compared to the comparable period, largely as a result of a combination of strong consumer demand and the positive impact of the introduction of a 30% tariff on imported cement in May 2025.”

Zimbabwe: Khayah Cement has secured a US$60m rescue package from East African producer Hima Cement after creditors and shareholders unanimously approved a corporate recovery plan. The agreement will allow for debt settlement, refurbishment of the Harare plant and a return to sustainable operations, according to The Sunday Mail.

Corporate rescue practitioner Balisa Mbano said the approval marked a major turning point for the company, which has struggled with debt and operational inefficiencies. “The positive is that all creditors will be paid down in a compromise amount and settled immediately. This gives the company immediate relief and the breathing space to focus on growth rather than liabilities,” he said.

In the short term, Khayah Cement will stop clinker imports and instead produce locally, securing supply reliability. The phased investment will cover both working capital and capital expenditure. The full implementation of the recovery plan is targeted within six months, with completion targeted for March 2026. Khayah Cement operates a 450,000t/yr plant in Harare, and has faced foreign currency shortages, high operational costs and equipment breakdowns in recent years, leading to its placement under corporate rescue in 2022.

Zimbabwe: Construction of the Chegutu cement plant by Chinese investor Shuntal Investment has reportedly reached the halfway stage, with production scheduled to begin in early 2026, according to the government-owned newspaper The Sunday Mail. The plant will produce 800,000t/yr of cement and is the second cement plant under development in Mashonaland West, alongside WIH-Zim’s Magunje plant, also set to open in 2026.

Shuntal Investment general manager Zhou Bin said the project is on schedule. “The entire project is expected to be completed before the onset of the 2025/2026 rainy season. This timing is deliberate so that production will not be disrupted during the critical rainy months,” he said  

He added that the plant will adopt modern technology, including a pipe spray cooling system, bag-type dust removers reportedly capable of reducing 99% of dust emissions, and fully enclosed, spill-proof production lines. Raw materials will be sourced from the nearby Lambourne quarry site, reducing Zimbabwe’s dependence on imports. Around 200 local workers are currently employed, building staff housing, storage facilities, warehouses and plant infrastructure.

Ropafadzo Chafesuka, a female truck driver at the site, said 'There are several female workers here, and this has empowered us. We are certain that once the plant starts production, more women will be employed, reducing early marriages and helping fight drug and substance abuse.”

Local press in Zimbabwe previously reported in August 2025 that Shuntai Holdings was in a legal battle with a local school over the construction of the plant 497m from the school’s boundary. Construction has reportedly continued despite a High Court judge ordering construction to cease.

Zimbabwe: China-based Shuntai Holdings is reportedly in a legal battle with Bryden Country School in Chegutu over the construction of a cement plant 497m from its boundary, according to local press.

The Board of Governors said that the company disclosed its plans in February 2025 to objections from the school and parents, with construction still continuing despite a High Court order halting construction. The Board said that there was no supporting documentation for the company to operate, as the area is zoned for education and also hosts a secondary school and university. Bryden said that it lodged multiple objections against Shuntai’s environmental and social impact assessment, which it claims failed to address key health and safety issues, yet the Environmental Management Agency (EMA) granted approval in April 2025. The school has since reportedly taken legal action against the regulator. A High Court judge ruled in July 2025 that Shuntai Holdings was in contempt of the stop-work order, but construction reportedly continues.

In July 2025, Shuntai administration manager Yan Bo confirmed the company has invested US$70m in the project, which is expected to produce 0.8Mt/yr of cement starting in 2026.

Zimbabwe: The Environmental Management Agency (EMA) has ordered WIH-Zim Cement, a joint venture between West International Holding and Labenmon Investments, to stop construction of its Magunje cement plant after inspectors found violations of Environmental Impact Assessment (EIA) conditions, including failure to compensate displaced households, according to Bulawayo 24 News. The EMA fined the company US$5000 and issued an enforcement order halting all activity until ‘EIA certificate conditions are adhered to.’

An inspection on 16 July 2025 revealed that construction continued despite High Court directives and community complaints. At least 20 households have reportedly lost farmland to a diversion road, while one homestead lies within the project boundary. Inspectors reported that WIH-Zim had already cleared 10 hectares of land and begun building staff quarters for 600 workers without meeting relocation requirements. The EMA also reportedly found that the company had failed to obtain a Communal Lands Occupation Certificate from Hurungwe Rural District Council. The EMA said “Continuous monitoring of the project is essential as this is a sensitive high-impact project,” warning that construction cannot resume until all affected families are compensated and relocated.

Local press reported in May 2025 that the cement plant was ‘progressing well,’ with the completion of site levelling and connection to the national power grid established and 60 local people already employed.

Zimbabwe: The government is ‘optimistic’ that Zimbabwe will become self-sufficient in cement by early 2026, according to The Herald newspaper. The Industry and Commerce Minister Mangaliso Ndlovu toured the country’s Chegutu cement plant, currently under construction, where he was upbeat about Zimbabwe’s cement manufacturing capabilities.

Ndlovu said “This project is addressing critical cement shortages that we are experiencing, leading to imports from neighbouring countries. We are happy that by the beginning of 2026, this plant will start producing cement, meaning that more than likely there will be no need to import.”

The plant is owned by China-based Shuntal Investment, and administration manager Yan Bo confirmed it had invested US$70m in the project. The plant will produce 0.8Mt/yr of cement. The project currently employs 300 local people, with total employment across Shuntal’s Zimbabwe operations expected to reach 4000.

Zimbabwe: The Centre for Natural Resource Governance (CNRG) has called on the Ministry of Mines and Mining Development to suspend operations on a US$1bn cement project in Magunje, Mashonaland West, citing ‘a spiralling crisis’ of human rights abuses, forced displacements and environmental harm, according to Pindula News. The project is led by Labenmon Investments, in partnership with China-based West International Holding. It is expected to produce 0.9Mt/yr of cement and 1.8Mt/yr of clinker. The project will reportedly create 5000 jobs and spur local development, but CNRG has raised concerns on behalf of local communities.

There have been reports that communities have been forcefully removed from their ancestral lands and graves of relatives ‘desecrated’ in the wake of mining developments. The group also raised concerns about alleged ‘fraudulent consultations,’ with legally required village meetings bypassed and affected communities excluded from decision-making processes. The newspaper also reported that eight villagers from Kapere were arrested for standing up to the mining project and continue to be summoned to the court despite the complainants failing to appear. CNRG staff members also reportedly faced threats from the Zimbabwe National Army while conducting an inspection in Kemapondo village.

There are also reports of the local Magunje Dam being polluted by the cement plant and of fires sparked during land clearing exercises, which have razed farmlands. There are also concerns of labour violations, with employees allegedly working in dangerous conditions, below the minimum wage and without formal contracts. The Zimbabwe Diamond and Allied Minerals Workers Union has escalated the matter to the Labour Court.