Will PPC’s lime disinvestment affect Zim?
Cement producer, PPC Limited, this week announced its divestment from the lime business.
“The board of directors of PPC is pleased to announce that on 2 May 2021, PPC South Africa Holdings
Proprietary Limited, a wholly-owned subsidiary of the company, entered into transaction agreements with Kgatelopele Lime Proprietary Limited, to dispose of the entire issued share capital of PPC Lime for a consideration of R515 million,” said PPC.
But, what could this mean for Zimbabwe, which last year introduced a conservation farming programme dubbed ‘‘Pfumbvudza’’.
One of the principles behind the Pfumvudza concept is the use of agricultural lime before planting.
Agricultural lime is a calcitic grade soil additive, which enhances crop yields as it increases the pH of acidic soils, thereby greatly enhancing uptake of nutrients by plants.
In addition to Pfumbvudza, Government last year introduced mandatory liming for contract farmers.
Expectedly, the development has driven local demand for agricultural lime products.
But, will PPC’s move to sell off its lime business, which it claimed supplied “almost 60 percent of the lime consumed in Southern Africa” affect supplies locally?
The short answer is yes, but it is also an opportunity for other local lime producers to step up and cover the supply gap.
Interestingly just last week, another cement producer, Lafarge Cement Zimbabwe, launched a new US$2,8 million dry mortar mix plant, which will — among other benefits — result in increased lime output.
Lafarge CEO Precious Nyika, said the new plant will be a game-changer in Zimbabwe’s agricultural sector.
“Our expansion project is indeed in line with the Agriculture Recovery Plan (2020–2023).
“As a key producer of Agricultural Lime, the expansion project brings to life one of the principles, which is the Blitz Soil Conditioning Programme.
“Lafarge currently contributes 25 percent of the total lime demand,” she said.
Zimbabwe’s Blitz Soil Conditioning Programme is part of the Agriculture Recovery Plan, which aims to boost the production of maize, wheat and soyabean, to ensure national food security.
Improved agricultural output in these crop segments will also help to lessen pressure on the fiscus as the country’s food import requirements begin to decline.
Business Weekly