CEMENT manufacturer PPC Zimbabwe now earns the bulk of its revenue in US dollars, with over 90% of sales dollar-denominated, as strong cash payments from clients boost the company’s liquidity.
The dominance of US dollar transactions positions PPC Zimbabwe as a rare debt-free, cash-generating player in Zimbabwe’s volatile multi-currency economy.
But with the government planning a shift to a single domestic currency using the Zimbabwe Gold (ZiG), the company faces potential disruption that could affect its market-leading operations and margins.
“The reality is that Zimbabwe has adopted a multicurrency model, and PPC Zimbabwe is actually a US dollar business. Over 90% of our sales are in US dollars, and just to give you perspective, in February, actually, it was about 98%,” Ndima Rawana, PPC Zimbabwe managing director, told investors at a recent capital markets day in South Africa.
He said some ZiG is required for government transactions such as taxes and payments to Zesa, the national power utility. Rawana added that growth in the construction sector is expected to sustain demand for cement.
PPC Zimbabwe’s earnings before interest, taxes, depreciation, and amortisation grew 28% over the 10 months to January 31, 2025, building on a 29% growth the previous year, highlighting strong momentum in core operations.
“In the last two years, we have declared dividends of about US$49 million. When I say ’gaining momentum’, the next statement that I am about to share with you will show you how this momentum has actually been seen,” Rawana said.
“Before the two years that I have shared with you, the ten years, going back ten years, it was only US$33 million that was declared in
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dividends.”
Being debt-free allows PPC Zimbabwe to either reinvest excess cash into operations or reward shareholders through dividends. Cash-paying customers have risen from 22% in February to over 40% in March.
Cost-wise, inbound transport accounts for 29% of expenses, followed by power at 25%. To address power costs, PPC Zimbabwe is installing solar plants at its Colleen Bawn and Bulawayo Milling plants, expected to cut costs by 50% and boost clinker production. Purchased clinker represents 18% of total costs.
