Diversified local company, Kwandisa Group, has secured partners willing to invest US$60 million into a cement plant in Zimbabwe’s Midlands Province area to exploit a supply gap amid soaring demand.
The deal, now subject to regulatory approval, was concluded earlier this month with various financing models already under consideration.
Kwandisa is a local business company that started in the 1990s and has grown to become a diversified group with interests in various sectors, including agriculture, retail and manufacturing.
The business, which already has interests in construction, has over the years sold huge volumes of cement imported, predominantly from Zambia, as local supply struggled to meet growing demand.
Kwandisa Group managing director Clayton Musasiwa could not be drawn to reveal finer details due to the delicate stage of the deal, but confirmed the project saying at least 500 full-time jobs would be created in the first phase while 300 more would be created in the second phase
“We have been in the market for more than a year now and finally we are at a stage where everything is set and ready for conclusion. Unfortunately, I cannot give you more details as we are bound by non-disclosure agreements,” he said.
“The past year has been very busy for us with both local and foreign investors interested in the cement venture. I am glad we have found a suitor and now we must deliver,” he added.
Demand for cement is expected to remain strong driven by massive infrastructure development projects at Government, corporate and individual levels. Massive housing projects across the country are being implemented as cities and towns continue to expand.
The Government, on the other hand, has also lined up a solid pipeline of infrastructure projects across the country, with some already under implementation, which is driving demand for cement, creating scope for investments into the sector.
Mr Musasiwa said the group also plans towards doubling double capacity at its maize milling operation, Adult Milling Company, by the end of 2023.
Meanwhile, as part of their corporate social responsibility, Kwandisa Group has been supporting more than 1 000 families in Mashonaland Central with basic needs provisions, particularly food.
“For more than two decades, Kwandisa Group has been unwavering in our commitment to serve disadvantaged households in Mashonaland Central Province and help underprivileged families from the Bindura area by providing them with maize-meal from its subsidiary Adult Milling Company.
This programme feeds over a 1 000 families per annum,” said the group in its corporate social responsibility report.
“Kwandisa believes success will be amplified as we adopt and implement policies that prioritise the well-being of people in our community, our employees and their families.
“We also believe that sound, sustainable business practices are crucial to building trust and enhancing our reputation,” the group said.