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Project Management Update from Harare

REPORT 

By Peter Banda

Harare, Zimbabwe
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Project News from Zimbabwe

PPC to spend $280 million on Zimbabwe capital expansion projects

PRETORIA Portland Cement (PPC), Zimbabwe’s largest cement firm, has raised its capital spending budget on expansion projects to about $280 million, a senior company official said in a statement this week. Chief Executive Mr Ketso Gordhan said PPC would spend US$80 million on building a cement mill in Harare to be commissioned in 2016.
This additional spending will increase PPC’s capital spending budget by about 30 percent from the original $200 million. Last year, the company announced a capital expenditure budget of $200 million to construct a clinker plant in Mt Darwin and a cement mill in Tete Province, Mozambique. The new Harare cement mill is expected to boost operating efficiencies for the company, which is also planning to close “less efficient mills” at its Bulawayo factory.

“PPC expansion plans (will) be achieved by backward integration in a phased approach,” said Mr Gordhan. “First, (will be the) construction of 100 tonnes per hour cement mill (or 700 000 tonnes per annum) in Harare for $80 million . . . to be commissioned in 2016.”

This will be followed by construction of a clinker plant and a mill at a cost of $200 million. The Harare mill will be funded by a corporate loan to be secured against PPC Zimbabwe’s balance sheet.

“The modern efficient mill in Harare gives a competitive advantage and phased capital expenditure approach reduces risk,” said Mr Gordhan.

On operations, Mr Gordhan said the prevailing liquidity constraints in the economy had led to a slowdown in local demand. Zimbabwe, which adopted the multiple currency system in 2009, is facing serious liquidity challenges due to a number of factors, including subdued exports. PPC also faces stiff competition from Lafarge and Sino Zimbabwe.

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About the Author

140220-pmwj20-banda-IMAGE1 BANDAPeter Banda flag-zimbabwe

Harare, Zimbabwe

Peter Banda is an agile Portfolio Manager with Change Management, Marketing & Project Management Skills, and an accomplished entrepreneur with broad stakeholder management experience. He is a founder of Zimbabwe’s largest Association of Project Managers with a membership of over 1000, Project Management Zimbabwe (PMZ – formerly called Project Management Institute of Zimbabwe). He has worked in both the private & public sectors during the last 20 years in Zimbabwe, Botswana & South Africa. Peter is a born & passionate teacher, mentor & trainer with skills ranging from Personal Development Planning to Project Management. Peter has presented & published over 20 papers at high profile international conferences & leading newspapers & publications respectively during the last 8 years.

Peter is currently Secretary- General & CEO of PROJECT MANAGEMENT ZIMBABWE (PMZ). Responsibilities cover strategic navigation of PMZ towards the vision covering board advisory and stakeholder management. He was previously a Higher Education Examiner, Facilitator, Lecturer, Curriculum Developer and Assessor for both local and International Diploma and Degree courses for the Zimbabwe Ministry of Higher & Tertiary Education. He also served as an Examiner, Assessor and Facilitator on for SpringSoft in South Africa. Peter holds a Bachelors (Hon.) degree and MSc qualification, and is currently studying for a PhD & PMP exams. A God fearing father of 2 lovely daughters & 1 son, Peter likes reading & researching current affairs, coaching others to realise their dreams, and watching soccer & cricket. Peter Banda can be contacted at PMIZ National Secretariat Office [email protected]