Zimbabwe hit by wave of cheap cement imports: PPC Zimbabwe
CHENGETAI MURIMWA
Zimbabwe’s cement industry is reeling under pressure due to the rising influx of cheap imported cement, which has resulted in an estimated US$50m loss in potential revenue.
PPC Zimbabwe, a leading player in the sector, has raised alarm over the detrimental impact of these imports on local manufacturers and the broader economy.
Speaking to journalists at the Harare plant,PPC Zimbabwe Managing Director Albert Sigei highlighted the unfair advantage enjoyed by importers and called for urgent government intervention.
“We continue to witness a massive influx of cement imports into the country. If this trend persists, Zimbabwe will unnecessarily lose over US$50m in scarce foreign currency, which could otherwise be retained through local production,” Sigei said.
“These imports enjoy an unfair advantage over local players, as importers have not made any investments in the country, unlike local manufacturers. This could lead to a slowdown in local manufacturing and, ultimately, job losses.”
Sigei emphasized that local cement producers face disproportionately high production costs compared to their regional counterparts, citing electricity, transportation, and labor as major cost drivers.
“Local manufacturers are operating in a high-cost environment relative to their peers in the region, especially regarding power costs. For instance, electricity tariffs in Zimbabwe have increased by approximately 76 percent over the past year. Comparing the cost of power from the previous calendar year to the beginning of this year, there has been a significant rise, which has negatively impacted financial performance,” Sigei explained.
Frequent power outages further compound the challenges faced by the industry. Sigei disclosed that PPC Zimbabwe had endured nearly 400 hours of unplanned production stoppages in the past year.
“Our production facilities are designed for continuous operation, except during scheduled maintenance. However, these disruptions have drastically reduced our efficiency and output,” he explained.
Sigei called for the government to implement protective policies to level the playing field and safeguard the local cement industry.
“Decisive policy action is critical to address the challenges posed by cheap imports. Protecting local manufacturers not only preserves jobs but also strengthens the country’s industrial base and economic resilience,” he said.
PPC Zimbabwe has urged authorities to prioritize the survival of domestic businesses and curb the uncontrolled inflow of inexpensive cement, which continues to undermine the sustainability of local manufacturing.
