Government discontinues cement import licenses

Government discontinues cement import licenses

Nevanji Munyaradzi Chiondegwa

The government of Zimbabwe will stop issuing any new cement import licenses amidst the increase in the production capacity of local cement manufacturers, a Cabinet Minister has said.

This was said by Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere during a post-Cabinet media briefing in Harare yesterday while giving the outcome of measures
instituted to address the country’s cement market supply and demand
situation, as presented by the Minister of Industry and Commerce,
Honourable Sithembiso Nyoni.

Dr Muswere said, “Cabinet advises that following the Cabinet decision to allow the temporary importation of cement in October 2023, the Ministry issued 971 licenses totaling 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.”

Dr Muswere mentioned that the local industry is now producing above-optimal levels. The four cement manufacturing companies are producing a combined 160 500 metric tonnes per month against the installed capacity of 241 000 metric tonnes per month.

The increase in production capacity to optimal levels had seen the local companies stockpile cement and reduce production. To counter this and boost local industry, Government was discontinuing the issuing of cement import licences.

Dr Muswere said, “Depressed local demand has resulted in the companies stockpiling cement and reducing production. 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.”