• Zimbabwe cement volumes rose 3% in the five months to August

  • South Africa and Botswana volumes fell 8% over the same period

  • PPC is assessing financing for a new integrated plant in Zimbabwe

Harare — PPC sold 3% more cement in Zimbabwe in the five months to August 2026, supported by demand from industrial and retail customers. Volumes across its South African and Botswana operations fell 8%, giving the group a stronger sales market in Zimbabwe as it considers building another integrated plant in the country.

Zimbabwe revenue increased 5% over the period. Revenue from the South African and Botswana cement operations declined 2%, with pricing and product mix cushioning the effect of their lower volumes. PPC’s Zimbabwe business is generating sales growth from a broader base of construction customers at a time when its other cement markets face weaker demand.

PPC has not disclosed how much of Zimbabwe’s additional volume went to industrial projects or retail buyers. That split matters for the proposed plant. Large projects can lift orders for a defined construction period, and retail sales provide a measure of demand across smaller builders and households. A new kiln requires enough sustained cement and clinker demand to recover its construction and financing costs over many years.

The existing Zimbabwe plants are producing more of the clinker used to make cement. PPC said improved plant reliability and higher production of its own clinker helped lift the Zimbabwe business’s earnings before interest, tax, depreciation and amortisation margin to 34.2%, from 19.1% in the comparable period. Local clinker production reduces the need to obtain that input elsewhere and gives PPC greater control over a major part of its manufacturing cost.

The margin comparison includes an extended maintenance shutdown in the prior period. Another planned shutdown at Colleen Bawn is underway, and PPC expects it to moderate the margin reported for the six months to September. The half-year result will give a firmer measure of earnings after the plant has absorbed the current maintenance work.

Zimbabwe’s cash generation has supported larger dividend declarations. PPC Zimbabwe declared US$15 million during the five months to August, up from US$12 million in the comparable period, and declared a further US$10 million after August. The later declaration falls outside the five-month reporting period. PPC said the Zimbabwe business remained debt-free.

Those distributions establish the value the existing operation is returning to shareholders. PPC is also assessing a new use for capital in Zimbabwe through the proposed integrated plant. The company said engagement with Sinoma on the engineering, procurement and construction contract continues alongside mine prospecting and an assessment of financing alternatives.

The plant has yet to reach a disclosed construction cost, funding agreement or commissioning timetable. Mine prospecting will inform the raw material supply available to the project, and the contract with Sinoma will establish more of its construction requirements. Financing terms will determine the annual cost that additional cement sales must cover.

PPC is already undertaking a major plant investment elsewhere in the group. Its South African and Botswana operations recorded a R1.14 billion net cash outflow before financing activities during the five months, largely associated with construction of the RK3 plant in the Western Cape. PPC expects RK3 to be completed within a board-approved R3.1 billion budget.

The concurrent projects place timing and capital allocation behind Zimbabwe’s proposed expansion. PPC Zimbabwe’s debt-free position and dividend capacity offer evidence of financial strength. The group still needs to establish the new plant’s cost and decide how much funding would come from the Zimbabwe operation, group resources or external lenders.

Zimbabwe’s 3% volume growth provides an initial demand case. The next half-year results will show how sales, clinker output and margins performed through the Colleen Bawn shutdown. PPC’s subsequent disclosures on plant cost, financing and construction timing will establish whether the current market growth can support another integrated cement operation.

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