This
short-term
policy
framework
aims
to
attract
significant
investment
into
domestic
clinker
production,
a
critical
element
for
cement
manufacturing,
in
a
bid
to
revive
the
manufacturing
sector
and
reduce
reliance
on
costly
clinker
imports.
The
ZIRGP
suggests
that
consolidating
limestone
resources
could
open
up
new
investment
avenues,
enhancing
clinker
production
capacity,
and
thereby
reducing
cement
production
costs.
Cement
producers
in
Zimbabwe
currently
import
a
substantial
portion
of
their
clinker,
a
factor
driving
higher
production
costs
and
limiting
competitiveness.
By
increasing
domestic
clinker
production,
the
proposed
measures
could
reduce
import
dependency
and
make
cement
more
affordable
for
consumers.
The
consolidation
plan
is
anticipated
to
stabilise
the
raw
material
supply
chain,
providing
cement
manufacturers
with
a
steady
source
of
limestone,
ensuring
they
can
meet
growing
demand
without
production
interruptions.
The
Zimbabwean
cement
industry
currently
has
an
installed
capacity
of
2.6Mta,
but
local
production
only
accounts
for
1.65Mt,
with
imports
surpassing
US$59m
in
2023.
National
demand
is
estimated
at
1.8Mt,
underscoring
the
potential
for
expansion.
Challenges,
including
high
electricity
tariffs,
outdated
equipment,
and
raw
material
shortages,
have
resulted
in
Zimbabwean
cement
prices
being
80-120
per
cent
higher
than
regional
averages.
Public
pressure
has
increased
to
allow
more
affordable
imports.
To
address
these
issues,
the
policy
document
recommends
increasing
the
cement
import
licence
fee
from
US$100
to
US$500
per
30t
to
curb
imports,
alongside
reducing
the
electricity
tariff
for
the
cement
industry
from
US$0.16/kWh
to
US$0.10/kWh.
This
ring-fenced
tariff
adjustment
could
lower
cement
prices
by
five
to
seven
per
cent,
making
locally
produced
cement
more
competitive.
Published
under Cement
News
Post
published
in:
Business