Cheetah Cement targets Zim market
FRANCISTOWN: Cheetah Cement, the country’s sole cement producer has set its sights on penetrating the lucrative regional market, starting with Zimbabwe.
The company produces two different types of cement, Portland cement 42.5N and Portland cement 32.5N at the company’s plant at Matsiloje, in the northern part of the country. Responding to an enquiry from Mmegi recently, Cheetah Cement General Manager, Edmund Hui said one of the key objectives of the company’s expansion plan is to leverage on the lucrative Zimbabwean market. It is anticipated that the P700 million expansion would have been completed
by June next year. BITC played a leading role in terms of assisting Cheetah Cement to start operations in Botswana. The company which traces its roots from Namibia purchased the operations of Matsiloje Portland Cement. Currently, the company’s daily production is 100 tonnes,which translates to 30,000tonnes per annum. The production is expected to rise to 900,000tons per annum after expansion. The plant currently employs 78 staff of 58 who are local Batswana’. The staff complement is expected to rise to 400 post the expansion phase. According to Hui , in a bid to keep operational costs under control, Cheetah Cement adopted the most advanced processes and techniques of cement production that have low carbon emission, is environmentally friendly and energy efficient.
On their plans to export to foreign markets, he said, “we are targeting the Zimbabwe market. Our aim is to supply 600,000tonnes per annum per to the country after the expansion of the plant,” Hui told Mmegi.
The exports to the Zimbabwean market will generate an estimated revenue of P2billion which will boost and widen national fiscus revenue. BITC has said that the project is also part of the country’s efforts to diversify its economy which depends on diamond production.Scaling up production at Cheetah Cement will also reduce the country’s cement import bill, estimated to be P1,2billion.
Botswana requires an estimated 620,000tonnes of cement per annum.Hui added, “We have also identified the Central District, Ghanzi District, Ngamiland and North East District as key target markets due to their proximity to the cement plant. The proximity to these markets provides us with a competitive edge.” The main raw materials to manufacture cement are limestone, clay, gypsum. Limestone is located and mined at Matsiloje. However, Hui noted that further studies are being undertaken to establish whether it can be sourced from other parts of the country.
“A geological survey is also being undertaken to explore the possibility of sourcing local high grade quality gypsum. Gypsum is however available in South Africa, Zimbabwe and Namibia. Fly- ash is sourced locally from Morupule Power Station”, said Hui . The previous operator of the cement plant cited high competition from South African producers as one of the reasons for closing down. Hui explained that Cheetah’s business model will be anchored by government’s clarion call for industrialisation and growth of the manufacturing industry as underpinned by NDP11 and Vision 2036. “We have also taken a holistic approach by ensuring that the production process is lean and that with adequate capitalisation the business will be competitive and viable”, he said. He also explained Cheetah Cement’s Impact in the community within which it operates. He emphasised that the company strongly believes in shared value.Hui said to date the company’s most significant investment in Matsiloje has been the creation of job opportunities something that has benefited the economy of the village.As part of its Corporate Social Responsibility Programme Cheetah Cement has earmarked a development fund to support the local community primarily women and children. The focus of the progamme will be to support in school enrolment, access to healthcare and supply of basic amenities to the impoverished sectionof women and children in the community.
“Cheetah Cement will also contribute to the local economy as whole through this manufacturing plant. This will result in job creation, levies to respective local authorities as well as value added tax settlements. SMMEs will also benefit from the production value chain.”