Cement imports plunge, local output surges – data shows Malawi’s business growth

Key Business Points

• Portland Cement Malawi Limited’s new Balaka plant (800 000 MT capacity) has lifted local output, cutting cement imports by roughly eight percent.
• The drop in imports trimmed customs revenue at the Mchinji One‑Stop Border Post by about twenty‑two percent, signalling a shift toward domestic supply.
• Retail prices have fallen from peaks over K52 000 to a range of K16 000‑K42 000 per 50 kg bag, stabilising the market and encouraging local construction projects.

Malawi’s cement sector is experiencing a noticeable turnaround after months of volatile supply and high prices. The Balaka factory, commissioned in December 2025, began operations with an annual capacity of eight hundred thousand metric tonnes. According to Chamber of Mines and Energy national coordinator Grain Malunga, this addition closed the domestic production deficit that had left the country relying heavily on Zambian imports. Before the plant’s launch, Malawi’s three cement producers—Shayona Cement Company, Cement Products Limited, and Portland Cement Malawi—together could supply about 822 012 MT yearly, far below the estimated 1.7 million MT market demand.

The impact is visible at the border. Tapona Nkhata, station manager at the Mchinji One‑Stop Border Post, told reporters that cement imports have fallen by about eight percent, leading to an estimated twenty‑two percent decline in customs revenue at the post where Zambian cement usually clears. He noted that while the revenue dip is a short‑term fiscal effect, the broader economic gain comes from reduced reliance on foreign supply and more predictable pricing.

Market observers say the price swing has been dramatic. In mid‑2025, erratic local deliveries pushed the cost of a 50 kg bag to as high as K52 000. Today, the same bag sells between K16 000 and K42 000, depending on brand, type, and location. This price easing has restored confidence among contractors, who no longer feel compelled to source cement from Zambia.

Shayona Cement Company managing director Jitendra Patel confirmed that the three local firms are now operating at roughly half of their combined capacity, leaving room for growth. He said excess production exists, creating healthy competition that could drive further efficiency. Patel added that if new projects emerge—such as concrete roads or housing developments—each plant could comfortably sell up to eighty percent of its output.

Finance Minister Joseph Mwanamvekha praised the trend as a win for import substitution. He pointed out that government policies aimed at discouraging unnecessary cement imports and promoting local manufacturing are bearing fruit. The minister emphasized that the administration continues to support both import replacement and export expansion, viewing the cement sector as a model for other industries.

For Malawi’s business community, the takeaway is clear: strengthening local production not only steadies prices but also opens avenues for downstream ventures. Entrepreneurs in construction, real estate, and related services can now plan with greater certainty about material costs and availability. As domestic capacity scales up, there is room for new entrants, joint ventures, or value‑added activities like blended cement or precast products.

The current environment offers a practical cue for firms to explore chigwirizano cha uchindikeni (investment partnerships) that leverage the country’s growing cement base. By aligning with local producers, businesses can reduce logistics expenses, improve supply chain resilience, and contribute to Malawi’s broader goal of self‑reliance in key building materials. The outlook suggests that sustained demand for infrastructure—roads, bridges, affordable housing—could keep utilization rates climbing, turning today’s excess capacity into tomorrow’s engine for economic growth.

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