News / National
PPC unveils 30MW solar energy project in Zimbabwe
6 hrs ago | Views
South African cement manufacturer PPC Limited has announced it is developing a 30 megawatt (MW) solar energy programme in Zimbabwe, aimed at reducing operational costs and lessening dependence on the unreliable national electricity grid.
In its 2025 integrated annual report for the financial year ending March 31, PPC revealed that ongoing energy shortages in both South Africa and Zimbabwe have necessitated strategic investments in renewable energy.
"In Zimbabwe, the group is developing a 30 megawatt solar programme with a 20 megawatt embedded plant and battery storage at Colleen Bawn and a further 10 megawatt plant at Bulawayo," the company stated. "Together, these initiatives support PPC's decarbonisation strategy, lower energy costs, and reduce reliance on grid-supplied electricity."
The company also noted that four renewable energy projects have been launched across its South African and Zimbabwean operations. These include solar plants at Slurry and Dwaalboom, a wheeling solar project for all four South African plants, and a wind energy venture nearing approval.
PPC Zimbabwe's operations during the financial year were marred by power outages and logistical challenges. The group highlighted that frequent electricity disruptions at its Harare and Colleen Bawn plants led to multiple production stoppages, while unreliable rail services caused delays in the delivery of raw materials.
Despite these hurdles, PPC Zimbabwe implemented supply chain optimisations and adjusted production strategies to lower costs and enhance efficiency. However, the company also had to contend with regulatory headwinds, including amendments to the Finance Act that restricted sales to non-VAT-registered customers and imposed penalties on non-compliant transactions.
Market conditions were further strained in January 2025 when government lifted import restrictions, opening the local market to an influx of cheaper cement, particularly from Zambia. The resulting price pressure forced PPC Zimbabwe to introduce customer discounts and streamline internal operations to defend its market share.
Even with a 5.5% decline in volumes and a 6.7% drop in revenue to ZAR3.1 billion, PPC Zimbabwe reported a 26% surge in EBITDA to a record ZAR849 million, driven by a significant reduction in input and logistics costs. The EBITDA margin climbed to 27.2%, and the unit remained debt-free, holding ZAR118 million in net cash - 94% of which is in hard currencies. The company also paid out US$13 million in dividends.
Looking ahead, PPC sees potential for growth tied to a rebound in the agricultural sector and stronger commodity prices, though it cautioned that uncertainty around infrastructure spending and private investment confidence could affect demand.
"The business will also support national infrastructure delivery while advancing its sustainability strategy, including investments in renewable energy and emission reduction," the company stated.
PPC emphasised that its Zimbabwean unit will remain focused on capital preservation, maintaining foreign currency liquidity, and delivering returns to shareholders while adapting to a more competitive market environment.
In its 2025 integrated annual report for the financial year ending March 31, PPC revealed that ongoing energy shortages in both South Africa and Zimbabwe have necessitated strategic investments in renewable energy.
"In Zimbabwe, the group is developing a 30 megawatt solar programme with a 20 megawatt embedded plant and battery storage at Colleen Bawn and a further 10 megawatt plant at Bulawayo," the company stated. "Together, these initiatives support PPC's decarbonisation strategy, lower energy costs, and reduce reliance on grid-supplied electricity."
The company also noted that four renewable energy projects have been launched across its South African and Zimbabwean operations. These include solar plants at Slurry and Dwaalboom, a wheeling solar project for all four South African plants, and a wind energy venture nearing approval.
PPC Zimbabwe's operations during the financial year were marred by power outages and logistical challenges. The group highlighted that frequent electricity disruptions at its Harare and Colleen Bawn plants led to multiple production stoppages, while unreliable rail services caused delays in the delivery of raw materials.
Market conditions were further strained in January 2025 when government lifted import restrictions, opening the local market to an influx of cheaper cement, particularly from Zambia. The resulting price pressure forced PPC Zimbabwe to introduce customer discounts and streamline internal operations to defend its market share.
Even with a 5.5% decline in volumes and a 6.7% drop in revenue to ZAR3.1 billion, PPC Zimbabwe reported a 26% surge in EBITDA to a record ZAR849 million, driven by a significant reduction in input and logistics costs. The EBITDA margin climbed to 27.2%, and the unit remained debt-free, holding ZAR118 million in net cash - 94% of which is in hard currencies. The company also paid out US$13 million in dividends.
Looking ahead, PPC sees potential for growth tied to a rebound in the agricultural sector and stronger commodity prices, though it cautioned that uncertainty around infrastructure spending and private investment confidence could affect demand.
"The business will also support national infrastructure delivery while advancing its sustainability strategy, including investments in renewable energy and emission reduction," the company stated.
PPC emphasised that its Zimbabwean unit will remain focused on capital preservation, maintaining foreign currency liquidity, and delivering returns to shareholders while adapting to a more competitive market environment.
Source - Newsday
