Zimbabwe's Cement Production Surpasses Local Demand, Reveals Cabinet
Zimbabwe's cement production has significantly exceeded local demand, according to the Minister of Industry and Commerce, Sithembiso Nyoni.
In a recent cabinet media briefing, Sithembiso Nyoni, Zimbabwe's Minister of Industry and Commerce, disclosed that the country's cement production has soared to 2.6 million tonnes annually, far outstripping the local demand of 1.6 million tonnes. This overproduction has led to the stockpiling of cement, as local manufacturers produce a combined 160,500 metric tonnes per month against an installed capacity of 241,000 metric tonnes per month.
The minister highlighted that the local cement industry is now operating above optimal levels, resulting in a surplus of cement in the market. This situation marks a significant turnaround from the previous year when Zimbabwe faced an acute shortage of cement, prompting the government to approve the importation of the product. The shortage had led to a price hike of over 100%, underscoring the volatility of the cement market in Zimbabwe.
Zimbabwe's main cement producers include PPC Zimbabwe, Khaya Cement, and Sino Zimbabwe Cement. The current surplus in production suggests that the industry has not only recovered from its previous shortfall but is also facing challenges related to overcapacity and reduced local demand.
The cabinet's announcement serves as an assurance to the nation that there is now adequate cement available in the market, potentially stabilizing prices and preventing future shortages. However, it also raises questions about the strategies that the local cement industry will need to adopt to manage the surplus production effectively and explore opportunities for export to maintain profitability.
