Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha yesterday commissioned a K175 billion ($100 million) Portland Cement Limited (PCL) Balaka Factory which he described as a major milestone towards industrialisation.
Speaking at the function, he said the plant will boost manufacturing, create jobs and cut the country’s dependence on imported clinker.
Mwanamvekha said the plant aligns with the Bottom-Up Economic Transformation Agenda and Malawi 2063, the country’s long-term development strategy.
He said: “This factory is a significant step in strengthening our manufacturing base. It will support infrastructure development, stabilise cement supply and help drive the competitiveness of our economy.”
The plant has the capacity to produce 2 000 metric tonnes (MT) of clinker daily and 800 000MT of cement annually.
Mwanamvekha said the plant will help Malawi save $30 million previously spent on clinker imports while generating $15 million in annual export earnings.
On the other hand, the Malawi Government is expected to collect around K35 billion in
taxes and K1 billion in mining royalties every year.
PCL board chairperson Symon Msefula described the investment as a turning point for the company and the community.
“We have created over 500 direct jobs and more than 2 000 indirect jobs. This project reaffirms our long-term commitment to Malawi’s development,” he said.
Chinese Ambassador Lu Xu said the project demonstrates strong cooperation between the two countries.
“This is one of the biggest Chinese industrial investments in Malawi, and it shows our commitment to working closely with the Malawian government,” she said.
Lu said the factory sets a model that can attract more reputable Chinese investors into the country.
In August this year, Malawi experienced a shortage of cement and Ministry of Trade and Industry’s “quick-fix” interventions under the Malawi Congress Party administration to stabilise cement prices through paltry imports fell short of resolving the crisis.
Malawi’s three cement producers—Shayona based in Kasungu, CPL in Mangochi and Portland Cement Malawi in Blantyre—hitherto had a production capacity of 822 012 MT against an annual market demand of 1 782 000MT. However, the 800 000MT capacity from the Balaka plant stands to close the gap.
