The government of Zimbabwe has discontinued the issuance of cement import licenses to boost local demand. Depressed local demand has led to cement producers stockpiling and reducing production, as stated by the Minister of Information, Publicity, and Broadcasting Services of Zimbabwe, Jenfan Muswere.
Rudairo Mapuranga
Speaking at a post-cabinet briefing, Minister Muswere mentioned that the cabinet considered and adopted the Report on the outcome of measures instituted to address the country’s cement market supply and demand situation. The report was presented by the Minister of Industry and Commerce, Hon Sithembiso Nyoni.
He added that following the decision to allow temporary importation of cement, the Ministry of Industry and Commerce issued 971 licenses, resulting in imports of over 300 thousand tonnes of cement, leaving the local market stranded.
“Cabinet advises that, following the Cabinet decision to allow temporary importation of cement in October 2023, the Ministry issued 971 licenses totalling 337,776 metric tonnes, out of which 218,000 metric tonnes passed through the borders. The four major cement manufacturers in the country have an installed capacity of 2.6 million metric tonnes per annum, against a national demand of 1.6 million metric tonnes.
Cabinet notes that the local industry is now producing above optimal levels. The four 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. Accordingly, the issuance of cement import licenses is being discontinued to boost demand for local cement.
