Zimbabwe cement imports temporary as investors build new capacity

Zimbabwe is experiencing a dramatic surge in demand for cement, driven by a combination of extensive government infrastructure programmes and a robust construction industry meeting growing needs for housing, commercial, and industrial space. The increase in demand has temporarily outstripped supply, prompting investors to establish new cement factories to close the gap.

The country's existing cement plants, some of which date back to before independence, have been modernising and expanding, while newer factories have also come online. Despite these developments, demand has consistently exceeded the capacity of the industrial base. Historically, shortages were less about production capacity and more about the need to upgrade equipment, modernise operations, and secure foreign currency to replace outdated machinery. These challenges were common across Zimbabwe's industrial sector.

Recent changes in ownership of the largest factory on Harare's eastern outskirts have helped overcome long-standing capital constraints, enabling further modernization. Cement producers have also incorporated environmental improvements into these upgrades, reducing dust and other pollutants while maintaining production efficiency.

Zimbabwe's cement industry relies almost entirely on locally sourced raw materials, primarily limestone and clays, which are processed into clinker for Portland-style cement. Additional inputs, such as ash from thermal power stations, are also used. Economically, cement production is most viable when factories are close to markets due to the high cost of transporting bulky products, whether bagged cement or pre-mixed concrete.

The Second Republic's investment-friendly policies have attracted significant interest from domestic and international investors. Several Chinese companies are developing new cement plants in Mount Hampden, Chegutu, Hurungwe, and Hwange, strategically located near abundant raw material deposits. The first of these new factories is expected to begin delivering cement sales early next year.

This month, Africa's largest cement manufacturer, the Dangote Group, announced plans for a major investment in Zimbabwe following a visit by founder Aliko Dangote. The investment, signed off under President Mnangagwa's administration, will focus on primary industries, including cement production, allowing work to commence immediately.

While imports from Zambia have temporarily mitigated supply gaps, rising domestic demand in Zambia limits their long-term availability for Zimbabwe. Government-sanctioned private-sector imports can supplement supply when needed, but local production remains the most cost-effective solution due to lower transport costs and proximity to markets.

The expansion of Zimbabwe's cement industry is expected to increase competition, improve efficiency, and enable manufacturers to offer more affordable prices. Lessons from Zambia's Dangote factory show that modern, large-scale production can end shortages, stimulate construction growth, and make cement more accessible to both large developers and ordinary citizens.

Beyond government projects, demand is also rising from private developers and individuals seeking to build homes in urban and rural areas. New factories will be well-positioned to meet this growing demand, ensuring that multiple suppliers in the market mitigate the risk of supply disruptions and create a competitive environment that benefits consumers.

With the expansion of cement production capacity, Zimbabwe is poised to sustain its infrastructure boom while supporting affordable construction, a key component of the nation's broader development strategy.