Zimbabwe’s construction sector could soon receive a major boost after cement giant PPC signed a strategic agreement with global engineering contractor Sinoma Overseas to explore expanding production capacity, including the possible construction of a new cement plant to meet rising demand.
The move comes as Zimbabwe continues to experience sustained growth in cement consumption, driven by increased activity in the industrial, infrastructure and retail sectors, with PPC Zimbabwe emerging as one of the strongest-performing units within the regional group.
Under the agreement, PPC and Sinoma Overseas will initially focus on improving operational efficiencies at existing facilities in Harare and Bulawayo before assessing investment opportunities to expand clinker production and establish a new integrated cement manufacturing plant in Zimbabwe.
In a statement, PPC said the partnership would involve an assessment of capital expenditure and investment requirements to potentially increase clinker and cement production from current levels through the construction of a new integrated cement plant in Zimbabwe.
PPC Zimbabwe Managing Director Ndima Rawana said the partnership marks an important step towards increasing production and positioning the company for future growth.
“Collectively, we aim to improve efficiencies and production levels at our current assets and potentially establish new clinker and cement production capacity in Zimbabwe,” said Ndima Rawana.
The investment consideration comes as Zimbabwe increasingly becomes a key growth market for PPC Africa, supported by rising domestic demand for cement.
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For the 10 months to December, PPC Group revenue increased by four percent, largely driven by stronger cement volumes from Zimbabwe, while earnings from South Africa and Botswana remained largely flat.
In Zimbabwe, cement sales volumes surged by 22 percent in the 10 months to January compared to the previous year, fuelled by what the company described as “sustained strong demand across the industrial and retail sectors.”
The figures underline Zimbabwe’s growing importance within the group, with PPC Zimbabwe also emerging as a major contributor to cash generation.
Over the past two years, PPC Zimbabwe delivered US$49 million in dividends to PPC Africa, significantly higher than the US$33 million generated during the previous decade, reflecting stronger profitability and improved market performance.
PPC Group Chief Executive Officer Matias Cardarelli said the Zimbabwean business has entered a new phase of growth after recording stronger sales and financial results.
“PPCZ’s cement sales and results have increased over the past two years, and we are now starting to prepare ourselves for the next growth phase,” said Matias Cardarelli.
Currently, PPC operates manufacturing plants in Harare and Bulawayo with a combined annual production capacity of 1.4 million tonnes, controlling more than half of Zimbabwe’s cement market.
The company is also strengthening energy security at its operations through the installation of two solar power plants with a combined capacity of 30 megawatts, a move expected to reduce disruptions caused by electricity shortages that have affected industrial production.
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