According to the company's spokesperson, Violet Vilili, the company currently produces 300,000 metric tons of cement annually. However, the new facility aims to produce at least three times this amount.

"This new integrated plant will mine lime and produce clinker to manufacture 800,000 metric tonnes of cement per annum," said Vilili.

She further disclosed that the facility's construction will commence this September, lasting 12 months, with commissioning expected in September 2025.

Urbanisation

By 2063, Malawi aspires to have world-class urban centers and tourism hubs across the country. The Malawi Planning Commission (NPC) states that urban centers are critical for the economy, providing jobs, markets, and efficient land use. Infrastructure growth, according to NPC, helps absorb urbanization, which is one of the country's long-term development pillars as outlined in #Malawi2063.

Achieving this vision requires sustainable and cost-efficient materials like cement. The NPC emphasizes the need for well-planned and environmentally conscious strategies to protect biodiversity and natural ecosystems.

In 2017 and again in 2023, Malawi experienced cement shortages, which the construction sector attributed to high demand due to a boom in residential and commercial construction. In 2023, then Finance and Economic Planning Minister Sosten Gwengwe attributed the challenge to a forex shortage.

Officials from Portland Cement, who briefed President Lazarus Chakwera during his inspection of the integrated cement manufacturing site in Balaka, assured him that the facility's 800,000 metric tons annual production would meet the country's demand.

National Construction Industry Council (NCIC) spokesperson Lyford Gideon praised the development.

"As a regulator of the construction industry, we are advocating for import substitution whereby locally made construction materials should drive the industry. The new cement plant is a step in the right direction and most commendable," he said.

Prospects

Officials, including Chief Executive Officer Jiangu Liu, outlined the facility's potential contributions to the country's economy by complementing the ATM strategy, which President Lazarus Chakwera launched in April 2024.

"Your Excellency, what Portland Cement Malawi is doing complements the ATM strategy, which focuses on Agriculture, Tourism, and Mining to revamp the economy," Liu said.

Another official noted that the mining sector would benefit from the mining of lime used to manufacture clinker, generating royalties for Malawi.

"Your Excellency, apart from tax revenue, the government of Malawi will receive K5.5 billion in mining royalties, which will help drive the country's economy," she said.

She also highlighted that the facility, once operational, would produce excess cement for export, helping the country earn much-needed forex.

Additionally, by setting up the facility, Malawi will save approximately USD 50 million in forex through local clinker production, a raw material in cement production that the company has imported for years.

In acknowledgement President Lazarus Chakwera said, "This is the way to go."

The company requested the president's support for a forex commitment to ensure the supplier provides the necessary technology and materials for the construction of the site.

A report on cement demand in Malawi highlights that, like in other parts of the world, demand is driven by the construction sector, linked to economic growth.

"As new businesses are established and existing ones expand, the need for industrial, commercial, and private property construction increases. Government infrastructure support in terms of new roads, water, electricity provision, sanitation, and public sector contributions to fixed capital formation further fuels demand for cement in Malawi," reads the report in part.

The WOW report highlights several mega-projects in Malawi at various stages, from feasibility to implementation.

The Portland Cement integrated manufacturing plant is also expected to create 500 jobs by September 2025.