Entry of new Chinese producer expected to stabilise runaway cement prices in 2026

 

The figures used are estimates of annual production based on monthly reports

Zim Now Business Desk

As Zimbabwe cement prices have gone up 42 percent, rising from around US$12 to US$17 per 50kg, hope is now anchored on expanding Chinese production via new player Huaxin, which is set to tip the sector back toward stability by 2026.

Zimbabwe’s construction boom powered by large infrastructure projects, industrial capacity upgrade, commercial and residential building has created demand of 2.3 and 2.5 million tonnes against strained national production.

Installed national capacity stands at roughly 2.6 million tonnes per year, but effective output is far lower — between 1.7 and 1.9 million tonnes, depending on maintenance cycles and power availability.

Kayah Cement and PPC have a combined installed capacity of 2,4million tonnes but have had consistent mechanical issues and are not likely to reach full capacity in 2026.

The supply gap of 500 000–700 000 tonnes is not being sufficiently filled by Import buffers from Zambia and South Africa which have thinned as regional exporters lift their prices or restrict outflows to protect local markets.

Chinese Producers Already Carrying Significant Weight

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Chinese-owned plants have steadily become the stabilisers of Zimbabwe’s cement ecosystem with Livetouch Cement contributing 410 000 t/year and Sino-Zimbabwe Cement putting out 300 000–350 000 t/year

Combined, they contribute about 27 percent of national installed capacity. Their consistency, particularly Livetouch’s relatively stable kiln operations, has made Chinese brands increasingly critical to the supply chain during peak shortages.

Huaxin Cement (China) is completing a new 800 000 tonne/year plant in Chegutu, due for commissioning in early 2026.

Once online, Huaxin will:

  • Add +30% to national capacity
  • Push total Chinese contribution above 1.5 million tonnes
  • Transform China into the largest consolidated capacity provider in Zimbabwe’s cement sector
  • Close the entire current national supply deficit

This will be the largest single expansion in Zimbabwe’s cement industry in more than a decade.

With Huaxin’s entry, Zimbabwe is projected to shift from deficit to near self-sufficiency, easing pressure on prices, reducing arbitrage, and restoring predictability for builders, infrastructure contractors and home builders.

 

 

 

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