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The Government has stopped issuing import licences for cement to boost the local demand and capacity of the local manufacturers.
In his Post-Cabinet briefing, Information, Publicity, and Broadcasting Services Minister, Jenfan Muswere said the cement supply situation has stabilised with the country’s four largest cement producers increasing their output. Said Muswere:
<blockquote>
Cabinet advises the nation that there is now adequate cement on the market. Accordingly, the issuance of cement import licences is being discontinued in order to boost demand for local cement.
</blockquote>
In November 2023, the Government gave the green light to individuals and companies with free funds to freely import cement after the price of the product had more than doubled to around US$20 per 50kg bag, up from US$9.
The price hike was due to a combination of factors that included breakdowns and scheduled maintenance at the country’s major cement producers as well as the expiry of import licences.
Early this week, the Minister of Industry and Commerce Sithembiso Nyoni said that local cement production has reached 2.6 million tonnes, against a demand of 1.6 million.
Nyoni said local cement manufacturers are now producing above optimal levels resulting in the stockpiling of the product.
Zimbabwe’s four main cement producers are PPC Zimbabwe, Khaya Cement and Sino Zimbabwe Cement.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Govt Stops Issuing Licenses To Import Cement

Local cement production has reached 2.6 million tonnes, against a demand of 1.6 million, the Minister of Industry and Commerce Sithembiso Nyoni has said.
Addressing a post-cabinet media briefing on Tuesday, Nyoni said local cement manufacturers are now producing above optimal levels resulting in the stockpiling of the product. She said:
<blockquote>
Cabinet notes that the local industry is now producing above optimal levels.
… companies are producing a combined 160 500 metric tonnes per month against the installed capacity of 241 000 metric tonnes per month.
Depressed local demand has resulted in the companies stockpiling cement and reducing production. The cabinet advises the nation that there is now adequate cement on the market.
</blockquote>
Zimbabwe’s four main cement producers are PPC Zimbabwe, Khaya Cement and Sino Zimbabwe Cement.
Last year, the government approved the importation of cement. That was after the country experienced an acute shortage of the product which resulted in prices being hiked by over 100%.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Cement Production Exceeding Local Demand - Cabinet

The Government says traders and individuals are still free to import fertiliser and cement to guarantee availability and affordability.
In November, the Government allowed imports of fertiliser and cement by traders and individuals until the end of 2023 after the two critical commodities became scarce, pushing up prices.
Seasonal weather forecasts ahead of the 2023/24 summer cropping season indicated a high likelihood of normal to below-normal rainfall.
The country experienced hot and dry conditions in October and November, but most parts of the country have been receiving rain since mid-December, raising hopes that the season can still be salvaged.
The Permanent Secretary in the Ministry of Industry and Commerce Thomas Wushe said fertiliser imports will continue. He said (via <a href="https://www.sundaymail.co.zw/fertiliser-cement-imports-to-continue">The Sunday Mail</a>):
<blockquote>
We are not stopping fertiliser imports as the season looks much brighter than initially projected.
</blockquote>
Wushe also said cement imports will continue as the authorised amounts under previous permits have not been exhausted. He said:
<blockquote>
The permits haven’t been fully dispensed and imports are continuing.
The cement supply situation is improving and we will continue to monitor local production in consultation with the local cement companies.
</blockquote>
Before the Government allowed fertiliser and cement imports, prices had increased by as much as 100 per cent.
The price of cement had increased to around US$20 per 50kg bag, up from an average of US$9.
A 50kg bag of cement now costs around US$12.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Fertiliser, Cement Imports To Continue

Zimbabwe’s cement crisis has deepened in spite of the Government’s decision to allow companies and individuals with free funds to import cement duty-free, reported <a href="https://businesstimes.co.zw/cement-crisis-deepens/">Business Times</a>.
Earlier this month, the Government gave companies and individuals the green light to import 100 bags of cement (5 tonnes) and 100 bags of fertiliser (5 tonnes) duty-free until 31 December 2023.
However, there are few individuals and businesses that have free funds to import cement due to the severe shortage of foreign currency in the country.
A construction executive who spoke to Business Times on condition of anonymity said that many projects have stalled due to the shortage of cement. Said the executive:
<blockquote>
The cement crisis has aggravated as the shortages have continued unabated in the formal sector with most projects stalling for months now.
In situations where the commodity is readily available, the prices are exorbitant ranging between US$15 and US$18 depending on the strength and are beyond the reach of many.
As we speak many projects have stalled and are certainly not going to meet set deadlines due to the devastating cement shortages.
We would have taken advantage of the little rains so far but with no money for imports and acute shortages, we can’t do anything at the moment.
</blockquote>
Builtlink Engineering managing director Perseverance Manyangadze said the acute shortages of cement have hurt the company’s operations. Said Manyangadze:
<blockquote>
We are faced with a situation whereby we are forced to double our costing due to the ongoing cement crisis.
As an example, we were billing a decent house at US$100 000 but with cement shortages and price escalations we are forced to double our costing as cement was sold at an average price of US$10.50 per 50 kilogrammes but now it’s now going for over US$18 per bag.
This means we have to increase our prices to meet the escalating costs. This cement crisis has caused some projects to stop as some of the project owners don’t have money outside their original budgets to continue operations and this has affected our viability.
We hope that the cement-producing companies will bulk up stock during the annual shutdown period from December 15, 2023 to January 15, 2024 to improve the situation.
In the long term, we anticipate that the cement producers get an increased power supply to ramp up production as with enough power supply, local cement is competitive.
</blockquote>
Cement remains unavailable on the formal markets but the product is available in various containers around town and shades where the prices are very high.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Cement Shortages Persist Despite Import Duty Waiver

A Harare-based cement dealer allegedly lost more than 3 000 bags of cement to a gang of fraudsters.
According to <a href="https://www.newsday.co.zw/local-news/article/200019934/cement-dealer-loses-4000-bags-to-fraudsters">NewsDay</a>, the accused, Blessing Mangwiro (51) and Samson Mutereko (56) appeared before Harare magistrate Dennis Mangosi on Thursday charged with fraud and were remanded in custody to this Friday for bail ruling.
The court heard that on 14 November 2023, Mangwiro and Mutereko and their alleged accomplices Phineas Chamunorwa and March Masiye, who are still at large, approached the complainant and requested to be supplied with seven truckloads of cement totalling 50kgX 4400 bags of cement.
It is alleged that on 15 November, the complainant supplied the accused persons with 3 000 bags worth US$46 500.
The accused then provided him with fake cash transfer documents.
The complainant realised he had been defrauded after checking his bank account and immediately filed a police report.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Cement Dealer Loses 3 000 Bags To Fraudsters

The Government has given companies and individuals the green light to import 100 bags of cement (5 tonnes) and 100 bags of fertiliser (5 tonnes) duty-free with immediate effect until 31 December 2023.
In a Press statement issued this Wednesday, 08 November, the Minister of Industry and Commerce, Sithembiso Nyoni, said the move is aimed at alleviating the shortage of the products in the market.
She, however, said those intending to import the products above 5 tonnes will require import licences from her Ministry. Said Nyoni:
<blockquote>
Following the Cabinet update on the supply situation of cement and fertilizer, the Ministry of Industry and Commerce will have an administrative arrangement with the Zimbabwe Revenue Authority (ZIMRA) to alleviate the shortages in the market.
The arrangement will allow the importation of 100x50kg bags (5MT) of cement and 100x50kg bags (5MT) of fertilizer.
This arrangement will be implemented with immediate effect.
Companies or individuals will be allowed to import fertiliser and cement of the quantities shown above up to 31 December 2023 without the requirement of an import licence.
Quantities above this will require import licences from the Ministry.
This does not apply to commercial imports.
</blockquote>
Zimbabwe is experiencing an acute shortage of both fertiliser and cement which has resulted in prices shooting through the roof.
The shortage of fertiliser is negatively affecting a booming construction industry while the unavailability of fertiliser threatens the success of the 2023/24 summer cropping season.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe Allows Cement, Fertiliser Imports Of Up To 5 Tonnes Duty-free

The Government says individuals and companies with free funds can now freely import cement.
Addressing a post-Cabinet media briefing in Harare on Tuesday, Information, Publicity and Broadcasting Services Minister Jenfan Muswere said:
<blockquote>
The nation is advised that following reports of artificial cement shortage in the market and the spiralling prices Cabinet has approved the importation of cement by individuals and companies with free funds.
</blockquote>
According to a report by <a href="https://newzwire.live/zimbabwe-allows-cement-imports-after-prices-double-heres-why-supply-is-short/">newZWire</a>, cement prices are rising due to a combination of factors that include breakdowns and scheduled maintenance at the country’s major cement producers as well as the expiry of import licences.
In 2021, the Government gazetted Statutory Instrument 89 of 2021, which restricted foreign cement by issuing import licences.
The report says many of these licences have since expired and the Government had been reluctant to renew them, causing a shortage and pushing up prices.
The price of cement is now around US$20 per 50kg bag, up from US$9 two months ago, according to <a href="https://www.herald.co.zw/govt-moves-to-avert-cement-shortages/">The Herald</a>.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe Allows Cement Imports As Prices Soar

Police have launched a manhunt for two suspected fraudsters who allegedly defrauded 70 people of approximately US$300 000.
Zimbabwe Republic Police (ZRP) Assistant Commissioner Paul Nyathi said Andy Baleni (aka Mambo Ndini) and Tinashe Zimunya used social media and radio stations to advertise cement which they said was on special offer.
Prospective customers were asked to pay for the cement with promises that the consignment would be delivered within seven days. Said Asst Comm Nyathi:
<blockquote>
The Zimbabwe Republic Police is concerned with fraud cases involving the purported sale of cement “on special offer” to unsuspecting members of the public through advertisements on social media and radio stations by a company known as Koffie and King Hardware allegedly situated at 10 Mbuya Nehanda Street, Harare.
The suspects, Andy Baleni also known as Mambo Ndini whose last known address is Flat 3 Glen Lorne, Chishawasha, Harare and Tinashe Zimunya advertised cement on radio and social media platforms at very low prices and alleged special offers thereby luring the unsuspecting transacting public.
Delivery of the purported cement was said to be done within seven (7) days after payment for the consignment.
Resultantly, more than seventy (70) victims fell for the scam and were defrauded approximately USD$300 000-00.
The Zimbabwe Republic Police is now appealing for information that may lead to the arrest of the accused persons.
We continue to implore members of the public to exercise due diligence before making any payments as this scam is now pointing fingers at the possibility of a pyramid scheme through the alleged sale of cement.
</blockquote>
Arguably, thousands of Zimbabweans have fallen victim to fraudsters over the years. Here are some ways to identify a fraudster:
<ul>
<li>Fraudsters may exhibit unusual or suspicious behavior, such as being evasive or avoiding direct questions.</li>
<li>Fraudsters may create a sense of urgency and pressure to act quickly without giving you time to think or do proper research.</li>
<li>Fraudsters may demand payment or financial information before providing goods or services.</li>
</ul>
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Fraudsters Disappear With US$300 000 From Bogus Cement Deals

Cement manufacturer Pretoria Portland Cement (PPC) Zimbabwe has said the cement manufacturing sector has enough production capacity to meet the demands of the country.
Speaking while briefing the Parliamentary Portfolio Committee on Industry and Commerce this Wednesday which was visiting their offices in Bulawayo, PPC Zimbabwe Managing Director Kelibone Masiyane said:
<blockquote>
As the cement manufacturing industry, we do have enough capacity to meet the demands of the country.
We however some time last year had an unfortunate incident where Lafarge cement had an accident that led to the closure of the plant while we were also having major maintenance works.
Hence we had two major players down leading to a shortage. However, as the cement industry, we have the capacity.
</blockquote>
The visit by the committee was part of its fact-finding visits to cement manufacturing industries.
The chairperson of the committee, Joshua Sacco (ZANU PF), explained the reasons for the fact-finding visit. He said:
<blockquote>
The main reason for our visit is to look at the capacity as in do we as a country have the capacity to produce cement as you know there is a lot of construction being done around the country.
There is a perception that we do not have enough cement in the country so as a committee we have been looking at this to say do we have enough capacity to produce as Zimbabwe. We are looking at pricing as well as quality issues.
We have come across a number of issues that we feel the government should address and come on board.
We are very happy to report that Lafarge they have received support from the government, and they have installed a vertical mill.
PPC has also received support from the government in establishing a milling plant in Harare. So we see that there is close interaction between government and business.
However, there is a need to look into revamping the National Railways of Zimbabwe to reduce the cost of logistics.
Issues of energy supply are some of the issues we came across. Hence we will engage the relevant authorities
</blockquote>
| <a href="https://www.sundaynews.co.zw/cement-producers-assures-nation-of-available-stock/">The Sunday News</a>

Cement Manufacturers Say They Have Enough Capacity To Meet Demand

Cement-manufacturing firm, Lafarge Cement Zimbabwe (Limited), has advised shareholders and the public that an investor has placed an offer for 76.45% of the company’s shareholding.
In a statement, Faithful Sithole, the Company Secretary said if the transaction is successfully concluded, it will have an impact on Lafarge Cement Zimbabwe’s securities. Read the statement:
<blockquote>
Further to the cautionary announcement dated 8 March 2022, shareholders and members of the investing public are advised that Associated International Cement Limited has received certain offers for its 76.45% stake in the Company.
The transaction, if successfully concluded, may have a material effect on the Company’s securities.
Accordingly, shareholders and members of the investing public are advised to exercise caution when dealing in the Company’s securities until a full announcement is made.
</blockquote>
<h4>More: <a href="https://news.pindula.co.zw/">Pindula News</a></h4>

Lafarge Receives Offers For 76.45% Stake In The Company

Industry and Commerce Minister Sekai Nzenza on Monday said cement import permits will continue to be issued until local production returns to normal. She said:
<blockquote>
Lafarge still has production challenges and we will continue issuing import permits until the situation improves.
</blockquote>
Lafarge Cement Zimbabwe, one of the country’s largest cement producers, experienced a plant breakdown resulting in a shortage of cement in the country.
Lafarge and PPC control more than 70 per cent of the domestic market.
In October this year, a roof collapsed at one of Lafarge’ cement mills.
The incident, which happened on 11 October, however, recorded no fatalities or injuries but disrupted production.
The shortage of cement has led to price increases, with some traders and dealers selling a 50 kg bag for US$13.
By contrast, in Zambia, on average, the 50 kg bag of cement costs around US$4.50.
A Harare-based retailer told The Herald that a shortage of locally-produced cement forces them to import the product resulting in steep prices. Said the retailer:
<blockquote>
It’s very difficult to get cement from big suppliers and we end up getting the supplies from private importers, but at a very huge cost that will pass on to consumers. That is why the prices are so high.
</blockquote>
<h4>More: <a href="https://www.herald.co.zw/cement-shortage-govt-to-maintain-import-permits/">The Herald</a></h4>

Govt To Maintain Import Permits On Cement

A Harare man is suing Zimbabwe Stock Exchange-listed cement manufacturing company, Lafarge Cement after the company decided to give him a tiny fraction of the number of bags of cement he bought three years ago.
Morgan Mhlanga paid for 1 200 bags of cement at Larfage in October 2018 and then did not claim them for two years, during which time the currency changed.
He paid US$13 136.43 into the cement maker’s Stanbic bank account for 60 tonnes of PC15 cement or 1 200 bags of cement in 50kg packaging.
But before Lafarge could deliver his cement, Mhlanga told the Harare High Court that his wife wrote to the company on 23 January 2019, instructing them not to release the cement to their building contractors because his building project had been put on hold.
When he finally claimed his cement on 13 August 2020, Larfage told him it owed him Z$15 136, enough to buy just 17 bags of cement down from the 1 200 bags that he paid for in USD in 2018.
In a High Court filing this week, Mhlanga’s lawyers said:
<blockquote>
The plaintiff could not accept nor collect the cement as this was not the quantity of cement that he had purchased from Lafarge and he immediately registered his disquiet.
The plaintiff has been protesting against this daylight robbery and has tried to engage Lafarge in discussions to reach an amicable settlement but the company has refused, failed and neglected to deliver the purchased product.
</blockquote>
Mhlanga wants an order compelling Lafarge to release his 60 tonnes of cement within 48 hours of service, or alternatively refund his money.
Lafarge is yet to respond.
In February 2018, the Government abandoned the 1:1 dollar peg for its dollar-surrogate bond notes and electronic dollars, resulting in massive losses to creditors.
Resultantly, several disputes from the dollarisation era have spilt into court after individuals and companies failed to settle U.S. dollar-denominated transactions in the currency after they too lost out during the currency switch.
At present, the exchange rate is one U.S. dollar for 97 Zimbabwe dollars at the interbank rate, but above 180 Zimbabwe dollars on the parallel market.
<h4>More: <a href="https://www.zimlive.com/2021/10/26/court-fight-after-1200-cement-bags-ordered-from-lafarge-in-2018-shrink-to-17/">ZimLive</a></h4>

Lafarge Offers Customer 17 Bags Of Cement, Yet He Paid For 1 200 In 2018

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