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'Zimbabwe cement manufacturers exceeding local demand'

by Staff reporter
06 Mar 2024 at 04:42hrs | Views
AFTER years of subdued production, local cement manufacturers are now exceeding local demand, Cabinet has revealed.

Some 2.6 million tonnes of cement are now being locally produced against a demand of 1.6 million as stated by Industry Minister Sithembiso Nyoni.

The remainder is now being stocked by Zimbabwe's four main producers including PPC Zimbabwe, Khaya Cement and Sino Zimbabwe Cement.

This could have a positive impact on the Zimbabwean economy which suffered a 36.7% slowdown in construction activity due to a lack of cement in 2023 according to the Zimbabwe National Statistics Agency (ZimStats).

"Cabinet notes that the local industry is now producing above optimal levels," reads Cabinet's Tuesday brief to journalists.

"…companies are producing a combined 160,500 metric tonnes per month against the installed capacity of 241 000 metric tonnes per month.

"Depressed local demand has resulted in the companies stockpiling cement and reducing production. Cabinet advises the nation that there is now adequate cement on the market."

A three-month period of dire cement shortage saw prices of common 50kg bags being hiked by over 100% last year leading the government to approve importation of the good ‘to manage the supply deficit.'

The improvements in supply are expected to drive Zimbabwe's economic growth up to 5.5%, a marked 2.5% increment from last year's 3.5%.

Source - newzimbabwe