Zimbabwe is fast emerging as the cornerstone of Pretoria Portland Cement regional revival, with its operations in the country delivering record dividends and strong cash flows that have outshone other units in the group.
For the four months to July 2025, PPC Zimbabwe achieved a 22% surge in sales volumes, propelled by robust consumer demand and a government-imposed 30% tariff on imported cement that tilted the playing field in favour of local producers.
The subsidiary’s resilience and profitability have positioned Zimbabwe as the group’s strongest performer, marking a pivotal shift in PPC’s “Awaken the Giant” turnaround strategy.
While the Colleen Bawn plant underwent an extended shutdown early in the year as part of a three-year performance improvement plan, the temporary hit to margins did little to dent overall momentum.
Once the plant resumed production, monthly earnings quickly recovered, confirming Zimbabwe’s ability to weather short-term setbacks and deliver sustainable gains.
The results are telling: cash generation has remained consistently strong, allowing the company to declare US$20 million in dividends for the first half of its 2026 financial year.
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Of this, US$12 million has already been paid out, with the balance scheduled for October. By comparison, only US$4 million was declared during the same period last year.
This five-fold increase highlights how central Zimbabwe has become to PPC’s financial health.
“Dividends of US$6 million were declared in the current period. Dividends totalling US$14 million have also been declared subsequent to the current period,” the group said, underscoring the unprecedented returns being generated out of Harare.
At the group level, PPC’s turnaround strategy continues to gain traction, with revenue up 4% and EBITDA margins climbing to 15.9% from 13.7%. But the standout contributions from Zimbabwe are now shaping both investor confidence and future capital allocation decisions.
Meanwhile, PPC’s planned US$30 million sale of its Arlington property remains on track, though not yet reflected in the July accounts.
The group also continues to invest in South Africa and Botswana, where its flagship RK3 integrated cement plant in the Western Cape is a key focus.
Management expects Zimbabwe’s contribution to rise further in the second half of the year, even as South African margins may soften slightly.
The group is banking on operational efficiency and its protective tariff cushion to keep the Zimbabwean unit on a growth trajectory that increasingly defines PPC’s regional outlook.
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