Officially commissioning the cement manufacturer’s $85 million state of the art plant in Msasa, Harare, which has an annual capacity of 700 000 tonnes and has created 87 additional jobs, President Mugabe said the development dovetails with the country’s economic blueprint the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset) and the 10 point plan.
“The plant production capacity is expected to increase from $1,1 million tonnes to 1,8 million tonnes placing it in a position to meet the national demand of just under a million tonnes. The new plant will create an additional 87 jobs bringing the total employment of the company to over 400 permanent workers.
“PPC’s ability to create employment is indeed in line with the Zimbabwe Agenda for Sustainable Socio-Economic Transformation and the 10 point plan which seek to grow the economy, accelerate wealth creation, achieve sustainable development and social growth through empowerment and employment creation,” he said.
On compliance with the country’s laws President Mugabe said Government was happy with the cement manufacturer’s compliance to the indigenisation laws of Zimbabwe.
“Government notes with satisfaction that in 2012, PPC Zimbabwe complied with the $1 per cent indigenous shareholding requirements of the Indigenisation and Economic empowerment legislation making it one of the first major manufacturing companies to be compliant that is the 51/49 percent requirement.
“By so doing PPC Zimbabwe has demonstrated what so many companies are struggling to put in place. It has demonstrated also that the Indigenisation and empowerment philosophy is no hindrance to foreign investment but instead the policy guarantees the security of such investment,” he said.
President Mugabe also noted that PPC Zimbabwe allocated 10 percent equity to the Community Share Ownership Trust that benefited Gwanda and Umguza rural districts, which also shared $3 million provided by the cement company while it also established an employee ownership trust with a total shareholding of 9,7 percent equity.
A consortium of indigenous Zimbabwean also acquired 4,9 percent equity in the company while the National Indigenisation and Economic Empowerment Fund has shareholding of 9,7 percent.
“Furthermore PPC Zimbabwe also supports the broad-based indigenisation and economic empowerment programme through paying dividends to its shareholders. Community Share Ownership Trusts received $200 000 in dividends in 2016 alone.
“Allow me to express my sincere appreciation to PPC Zimbabwe for their diligence in constructing this new plant and for all their positive contributions,” he said.
PPC Zimbabwe board chairman Mr Todd Moyo reiterated his company’s commitment to Zimbabwe.
“This plant is proof that we are here to stay,” he said.
He however called on Government to create a fair and level platform for fertilizer companies especially in the light of the coming in of cheap imports.