Displaying items by tag: Khayah Cement

Zimbabwe relaxed import rules on cement this week in a bid to bring down prices. This follows a high-profile visit earlier in November 2025 by Aliko Dangote with US$1bn investment plans including a new cement plant. Here’s what’s been happening.

Deputy Minister of Industry and Commerce, Raj Modi, announced this week that the government was aware of price issues and was taking measures to fix it. This has included issuing licences to import around 0.15Mt of cement from October 2025 onwards. He commented that there was a backlog of cement at the border. He noted that the country has a shortage of clinker with only PPC currently manufacturing it. Local media reports that the price of cement rose by 42% in October and November 2025. This has been attributed to a local construction boom, limited local production, and constrained imports. Subsequently, vendors have run out of stock.

South Africa-based PPC has certainly done well out of the situation. Its revenue for the six months to September 2025 rose by 23% year-on-year from US$89.4m to US$110m. This was attributed to a 25% increase in sales volumes. It was also achieved despite a prolonged shutdown period at its integrated Colleen Baw plant in the first quarter of its financial year. Earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 11% to US$25.9m from US$23.3m.

Import bans on cement in Zimbabwe have come and gone over the last couple of decades alongside the country’s wider economic issues in response to international sanctions. Zimbabwe is land-locked but it also shares a border with South Africa, a larger cement producer. The government implemented an import ban in 2021, prices have surged periodically and remedial actions, such as large-scale licence approvals, have been taken on occasion. An additional 30% surcharge on cement imports was introduced in May 2025.

The country clearly needs more local producers and Nigeria’s Aliko Dangote flew to the rescue on 12 November 2025 to sign a memorandum of understanding with President Emmerson Mnangagwa. Details are light on the US$1bn investment deal, but it includes a 1.5Mt/yr cement plant, power generation and a 2000km fuel pipeline from Walvis Bay in Namibia that will reportedly run through Botswana. Dangote was previously in talks with the Mugabe regime in the mid-2010s but talks did not progress.

However, other plant projects are already on the way. In late October 2025 local press reported that the China-based 0.8Mt.yr Chegutu cement plant was over half-way complete. Production at the site is scheduled to start in early 2026. The WIH-Zim Cement plant is also being built at Magunje. This one has reported cement and clinker production capacities of 1.2Mt/yr and 1.8Mt/yr. Unfortunately, the local Environmental Management Agency (EMA) ordered the project to stop construction in August 2025 after inspectors found violations of Environmental Impact Assessment (EIA) conditions, including failure to compensate displaced households. Further legal action has followed. This project is backed by Labenmon Investments, another China-based investment firm. Unfortunately, that company also popped up in the sector news this week in connection to a bribery scandal connected to an apparently separate grinding plant project in Bulawayo, according to the Herald newspaper. Two other unconnected and smaller grinding plants, JainQiang Cement and Zimsonc Industries, also reportedly started production making blended products in Hwange in mid-2025.

Of the existing cement producers, Khayah Cement entered into ‘corporate rescue proceedings’ in late December 2024, blaming international economic sanctions for causing an ‘untenable’ business environment. A public tendering process to find investors was announced by the former Lafarge subsidiary in May 2025. A US$60m rescue package from Uganda-based Hima Cement was approved by creditors and shareholders in September 2025. This includes refurbishing the company’s Harare plant. The country’s other local clinker manufacturer, Sino Zimbabwe, reportedly also restarted production in late November 2025.

The general economy in Zimbabwe was on track for a forecast 6% annual growth in July 2025 due to the agricultural sector and strong commodity prices. The International Monetary Fund (IMF) reiterated this view in November 2025, singling out easing inflation amid exchange rate stability [LINK]. Quite possibly this has also benefitted the construction sector too, leading to the current issues with imports. In this setting, Aliko Dangote’s investment plans are a serious vote of confidence for both the cement sector and the wider business environment.

Zimbabwe: Khayah Cement has secured a US$60m rescue package from East African producer Hima Cement after creditors and shareholders unanimously approved a corporate recovery plan. The agreement will allow for debt settlement, refurbishment of the Harare plant and a return to sustainable operations, according to The Sunday Mail.

Corporate rescue practitioner Balisa Mbano said the approval marked a major turning point for the company, which has struggled with debt and operational inefficiencies. “The positive is that all creditors will be paid down in a compromise amount and settled immediately. This gives the company immediate relief and the breathing space to focus on growth rather than liabilities,” he said.

In the short term, Khayah Cement will stop clinker imports and instead produce locally, securing supply reliability. The phased investment will cover both working capital and capital expenditure. The full implementation of the recovery plan is targeted within six months, with completion targeted for March 2026. Khayah Cement operates a 450,000t/yr plant in Harare, and has faced foreign currency shortages, high operational costs and equipment breakdowns in recent years, leading to its placement under corporate rescue in 2022.

Zimbabwe: South Africa-based Robtek is working on a ‘refurbishment’ project at Khayah Cement’s integrated plant in Harare. The project work on the kiln includes replacing 10 planetary coolers, installing 23m of kiln shell sections and refurbishing eight support rollers. Work on the raw mill includes replacing trunnion bearings, overhauling raw mill bearings, upgrading the internal diaphragm and head wall liners and installing a new double-flap valve to replace the star feeder.

Zimbabwe: Khayah Cement has begun corporate rescue proceedings with appointed supervisor Grant Thornton (Zimbabwe). The Sunday News has reported that the company is in financial trouble following equipment failures affecting its vertical roller mill. Grant Thornton (Zimbabwe) has called a meeting of Khayah Cement’s stakeholders and creditors in Harare on 19 February 2025. The rescue process aims to remove the need for liquidation.

Khayah Cement switched over from integrated to grinding-only production in 2023.

Zimbabwe: Khayah Cement has initiated corporate rescue proceedings due to the impacts of Western-imposed economic sanctions, which have created an ‘untenable’ business environment, according to The Chronicle. The company adopted a resolution on 20 December 2024 to start the rescue process under the Insolvency Act, to address its financial difficulties. The sanctions have reportedly hindered access to essential resources, affecting the company’s production capabilities. Khayah Cement said that further processes will be communicated to creditors and stakeholders.

Zimbabwe: Khayah Cement plans to invest approximately US$25m in capital expenditure in 2024, focusing on a kiln refurbishment project at its plant in Harare. The investment aims to increase production capacity and sales volumes, NewsDay Business News has reported. Preparatory work has begun, with completion expected by the end of 2025.

Khayah Cement's CEO, Innocent Chikwata, said that the project will address issues with its current equipment and stabilise the company’s operations by ensuring a reliable supply of raw materials. He noted that the plant's current capacity utilisation rate is 60%, with a target of 70% by the end of 2024.

Zimbabwe: Khayah Cement has reported a significant increase in sales volumes across its operations for the year ending 31 December 2023. Dry mortar product sales volumes surged by 153%, bolstered by the demand for the Supagrow agricultural lime range within the government's Pfumvudza agriculture programme, absorbing 0.34Mt during the period. The firm's cement business also saw a 34% year-on-year increase in sales volumes following the installation of a vertical cement mill in the third quarter of 2022.

Despite challenges such as power quality issues and equipment breakdowns impacting production, bulk cement volumes grew from 1% to 4% during the period. However, clinker production volumes fell by 21%, mainly due to the mothballing of the kiln in the last half of 2023.

The company said “A total of 1000 hours were lost as a result of the unplanned breakdowns which in turn impacted negatively on both clinker, cement production and sales volumes and with it profits and cash generation.”

Zimbabwe: Khayah Cement (formerly Lafarge Cement Zimbabwe) more than tripled its sales year-on-year to US$17.4m in the first half of 2023, from US$4.8m in the first half of 2022. During the year, the producer more than doubled its cement volumes, after repairing a collapsed mill roof and commissioning of a new vertical roller mill at its Manresa cement plant. Nonetheless, its loss grew by a factor of six to US$46.2m from US$7.2m.

Khayah Cement began making foreign currency sales, which accounted for 89% of first-half sales, in 2023. The company previously postponed the publication of its results for the half year following delays in finalising external audits.

Zimbabwe: Khayah Cement has appointed Arnold Zivanayi Chikazhe as its Company Secretary and Legal Advisor. He has acted as the company secretary of the company since May 2022, according to the Sunday News newspaper.

Chikazhe is a registered legal practitioner with over 15 years experience in various sectors, including retail, energy, mining, manufacturing, insurance, construction, health, public and non-governmental organisations both in Zimbabwe and the US. He holds legal qualifications from the University of Texas and the University of South Africa.

Zimbabwe: Khayah Cement (formerly Lafarge Cement Zimbabwe) commissioned a new vertical roller mill at its Manresa cement plant on 6 July 2023. The Chronicle newspaper has reported that the project constituted Phase 2 of Khayah Cement's expansion to the plant.