Portland Cement Malawi Limited has increased its cement production to 70 percent capacity, a development that is expected to save the country more than $30 million annually by reducing reliance on imported cement. Portland Cement Malawi Limited Chief Executive Officer Jianguo Liu said the increased output followed the company’s investment of over K200 billion in a new cement plant in Balaka District.
The plant has raised production capacity to 800,000 metric tonnes per year. Liu said the expanded capacity would support national infrastructure development while ensuring a steady supply of cement on the local market. “With the increased production, we are able to stabilise cement supply and contribute to price stability on the market while helping the country conserve foreign exchange that was previously spent on imports,” Liu said.
He also commended National Bank of Malawi (NBM) for supporting cement suppliers and transporters through targeted financial incentives, which he said had helped improve availability of the product across the country. Meanwhile, NBM Board Chairperson Grant Kabango has said the bank has, so far, disbursed over K3.2 billion to cement suppliers and transporters as part of efforts to strengthen collaboration with players in productive sectors of the economy. Kabango said the financing was aimed at supporting the entire cement supply chain in order to enhance efficiency and availability of the product nationwide.
“Our intervention is about conserving foreign exchange and supporting local production. We decided to provide the requisite financing to cover the entire cement supply chain, starting from procurement all the way to distribution across the country,” Kabango said.
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He said since the signing of a memorandum of understanding (MoU) with Portland Cement in October last year, K3.2 billion had been utilised, largely in Blantyre, where the initial phase was implemented. Kabango added that the bank expected the figures to rise as demand grows, particularly with Portland Cement opening a depot in Kanengo, Lilongwe. “The results we have seen in Blantyre are very promising and, with expansion into the Central Region, we anticipate increased demand for financing. We, as National Bank of Malawi, are ready and adequately resourced to support these financing needs,” he said.
