•  Shuntai Investments’ US$120 million Chegutu cement plant advances towards commissioning, adding 800,000 tonnes of annual cement production capacity
• The integrated facility targets Zimbabwe’s clinker supply gap, reducing reliance on imported cement and exposing a key constraint behind recent market shortages
• New domestic clinker capacity could reshape competition in Zimbabwe’s cement industry as producers prepare for a higher-supply environment

Harare  - Zimbabwe’s cement market is approaching a structural change as Shuntai Investments’ USD120 million integrated cement plant in Chegutu moves towards commissioning, targeting the clinker shortage that has constrained domestic production despite installed cement capacity of about 2.6 million tonnes a year.

The Chinese-owned project is expected to complete mechanical installation of its 800,000-tonne-a-year cement production line by 20 October 2026, with cable laying, wiring, grounding and integrated commissioning scheduled for completion by mid-November, according to general manager Li Xiaodong.

The plant combines limestone mining, clinker production and cement grinding, giving it control over the most supply-sensitive stage of cement manufacturing. The Chegutu facility also includes a 400,000-tonne lime line and a planned 50MW thermal power plant, while Shuntai has outlined a second phase covering additional clinker, grinding and power capacity across Zvishavane, Harare, Bulawayo and Mutare.

The economic importance of Chegutu lies in its clinker capacity. Zimbabwe’s recent cement shortages exposed a gap between installed grinding capacity and the availability of domestically produced clinker, forcing manufacturers to rely on imports when local production was disrupted.

Clinker is the primary intermediate material used in cement production. It requires limestone processing, kiln operations and consistent power supply. Grinding capacity can increase cement output, but without sufficient clinker production, the market remains exposed to external supply and foreign currency requirements.

Shuntai’s Chegutu plant introduces additional domestic clinker capacity into a market where PPC Zimbabwe has historically been the dominant local clinker producer.The supply constraints became visible in 2026 when Zimbabwe imported USD12.02 million worth of Portland cement in April, the highest monthly import bill recorded since at least January 2021. Retail prices increased from around USD12 per 50kg bag to USD17–18 during late 2025, prompting government approval for import licences covering 145,000 tonnes of cement.

The shortage developed through a combination of production disruptions and clinker constraints. The Ministry of Industry traced supply pressure to limited clinker availability, with PPC Zimbabwe the only producer manufacturing clinker at the time. Production interruptions at Sino-Zimbabwe Cement, power challenges and Khayah Cement’s difficulties during corporate rescue reduced available domestic supply.

Chegutu’s clinker capacity is therefore more important than its headline cement output. The plant’s kiln is designed to produce between 1,500 and 1,800 tonnes of clinker per day. At the upper end, operating for approximately 330 days annually, the facility could produce close to 600,000 tonnes of clinker, supporting around 800,000 tonnes of cement production depending on the clinker ratio used.

A second domestic clinker source changes the supply structure because the market becomes less dependent on one major kiln and imported clinker. The impact extends beyond cement producers into construction, where cement availability affects project costs, infrastructure execution and private investment.

Construction activity remains a major driver of demand through housing, roads, mining developments and industrial projects. Reliable domestic cement supply reduces exposure to import costs and external supply disruptions, although the scale of the benefit depends on whether new production reaches consistent commercial volumes.

The project’s delivery timeline remains an important factor in assessing its market impact. Shuntai initially targeted completion in January 2026 before moving the deadline to June, with later updates pointing towards August and September commissioning windows. Equipment delays linked to shipping disruptions affected implementation timelines, while the reported project cost increased from USD70 million to USD80 million and later USD120 million as the scope expanded.

The planned 50MW thermal power plant is another important component because electricity availability has affected production across Zimbabwe’s cement industry. Until dedicated generation is operational, the plant remains exposed to the same grid conditions affecting other industrial users.

 The timing of commissioning also matters for demand, Zimbabwe’s construction cycle typically strengthens between April and November before slowing during the rainy season. A mid-November commissioning means the first full measure of Chegutu’s effect on supply, imports and pricing is likely to emerge during the 2027 construction season.

The competitive structure of Zimbabwe’s cement industry is also changing. Shuntai has targeted 40% of the national cement market and more than three million tonnes of capacity by the end of 2027. PPC Zimbabwe has continued investing in its operations, recording an 18.2% increase in volumes in its 2026 financial year and exploring a new plant with Sinoma Overseas Development. Khayah Cement has committed USD20 million towards rehabilitation of its clinker kiln, while blended-cement plants in Hwange have entered the market.

If planned projects are completed, Zimbabwe’s installed cement capacity could exceed five million tonnes within the next two years. That expansion creates a new operating environment for producers. The market will increasingly be determined by production efficiency, power reliability, clinker availability and distribution capability rather than installed capacity alone.

 Equity Axis News