Cement imports have dropped by about eight percent, seven months after Portland Cement Malawi Limited commissioned its 800 000 metric tonnes (MT) capacity factory in Balaka District, which experts say has stabilised local supply and prices.
Malawi Revenue Authority Mchinji One-Stop Border Post station manager Tapona Nkhata, in an interview on Tuesday, confirmed the situation, adding that this has resulted in an estimatedt 22 percent drop in cement customs revenue at the border where cement imports from Zambia pass through.
“This is a positive development because of local production increase, but it has caused revenue to drop for Mchinji One-Stop B order Post,” he said.
Chamber of Mines and Energy national coordinator Grain Malunga, in a separate interview on Tuesday, attributed the drop to the commissioning of Portland’s Balaka factory in December 2025, whose annual capacity closed the domestic production deficit.
He said Malawi’s three cement producers, Kasungu-based Shayona Cement Company, Cement Products Limited in Mangochi and Portland Cement Malawi in Blantyre had up until now a production capacity of about 822 012MT against an annual market demand of about 1.7 million MT.
“The Balaka plant has stabilised prices and built trust from domestic customers to the effect that contractors are no longer forced to consider more imports from Zambia,” said Malunga.
Shayona Cement Company managing director Jitendra Patel said in an e-mail response on Tuesday that local production capacity from the three cement producers has increased.
He said they are using about half of its production capacity, a situation that means the industry can support additional projects.
Said Jitendra: “The local three companies are having excessive production, so much so that there is an acute competition.
“We are hoping that if projects can come up, then all three companies would be able to operate and sell at least up to about 80 percent of their production.”
He said with the increased capacity, the industry is in a strong position to support additional projects such as concrete roads, which could ensure roads construction without importation of raw materials.
Minister of Finance, Economic Planning and Decentralisation Joseph Mwanamvekha said the decline in cement imports is positive to the economy, adding that this is a result of the government’s efforts to ensure import substitution and tax measures meant to discourage imports.
“We are also doing everything to promote import substitution while also promoting exports,” he said.
In mid-2025, cement imports surged while domestic supply became erratic with prices soaring to as high as K52 000 per the 50 kilogramme (kg) bag.
The prices have since eased and are now ranging from K16 000 to K42 000 per 50kg bag, depending on the brand, type, and location.
The K175 billion ($100 million) Portland Cement Limited Balaka Factory was commissioned on December last year.
