The South African cement company, PPC Limited, has announced that the group is developing a 30 megawatt (MW) solar initiative in Zimbabwe aimed at lowering energy expenses and decreasing dependence on electricity from the grid.
As per PPC, energy shortfalls in South Africa and Zimbabwe are prompting investments in alternative energy sources.
"PPC introduced four new renewable energy projects in South Africa and Zimbabwe. These consist of on-site solar initiatives at the Slurry and Dwaalboom facilities, a solar wheeling project providing power to all four integrated South African plants, and a wind energy project that is nearing approval," stated PPC in its 2025 integrated report covering the period ending March 31, 2025.
In Zimbabwe, the group is working on a 30 megawatt solar project that includes a 20 megawatt on-site facility and battery storage at Colleen Bawn, along with an additional 10 megawatt plant in Bulawayo. These projects help support PPC's plan to cut carbon emissions, decrease energy expenses, and lessen dependence on electricity from the grid.
PPC mentioned in its financial year that local activities were marked by operational and market-related issues, with power supply shortages contributing to the former.
"Power outages caused several shutdowns at the Harare and Colleen Bawn facilities. Inconsistent rail transportation postponed the arrival of essential raw materials," PPC stated.
Although facing these difficulties, PPC Zimbabwe enhanced its supply chain to boost delivery turnaround times and modified its production methods to cut costs and increase efficiency. In terms of the market, the company functioned in a shifting regulatory landscape.
PPC stated that changes to the Finance Act, which took effect in January 2024, limited sales to clients who are not registered for value added tax and imposed additional fees on transactions that do not meet compliance standards.
"Alongside a weaker agricultural industry and increased interest rates, these actions curbed domestic demand. In January 2025, the government removed import restrictions, leading to an influx of inexpensive cement imports, particularly from Zambia," PPC stated.
These imports led to price competition and altered local market conditions. PPC Zimbabwe countered with specific customer discounts and internal efficiency enhancements to maintain its market standing.
During the review period, PPC Zimbabwe's activities generated significant cash flow improvement, with net cash rising to ZAR118 million compared to ZAR40 million in the previous year.
"PPC Zimbabwe recorded impressive outcomes even with a 5.5% drop in volumes. Revenue decreased by 6.7% to ZAR3.1 billion, yet a significant decrease in input and transportation costs led to a 26% increase in EBITDA, reaching a new high of ZAR849 million," PPC stated.
The EBITDA margin rose to 27.2%. The company continues to be free of debt, with ZAR118 million in unencumbered cash, 94% of which is kept in strong currencies. It announced and distributed US$13 million in dividends, highlighting its commitment to providing long-term value for the group.
PPC is aiming for energy stability to capitalize on a projected increase in construction activity.
"The expected recovery is associated with better agricultural production and higher prices for commodities," PPC stated.
Infrastructure investment may gain from this economic upswing, although uncertainties regarding government infrastructure spending and private sector confidence continue to be significant influences.
PPC stated it will keep concentrating on lowering input expenses, broadening its range of products, and safeguarding its market position within a more competitive setting for its domestic branch.
"Maintaining capital, ensuring foreign currency liquidity, and delivering returns to shareholders will continue to be top focuses," the cement company stated.
The company will also assist in national infrastructure development while promoting its environmental strategy, such as funding for renewable energy and lowering emissions.