Malawi last week commissioned a $100 million integrated cement plant in Balaka, a move the government says will help ease chronic foreign-exchange shortages by cutting cement imports by an estimated $50 million annually.
The project was developed by Chinese company Huaxin Cement Group through its subsidiary, Portland Cement Malawi Limited, and localises clinker production, the core ingredient in cement manufacturing, as seen on Ecofin Agency.
Construction began in October 2024 and reached full commissioning in early December 2025, just eleven months later, reflecting the rapid rollout associated with China-backed industrial projects.
The facility expands Portland Cement Malawi’s capacity from 300,000 tonnes to about 1.1 million tonnes per year, converting the site from a grinding depot reliant on imported material into a fully integrated plant processing local limestone into finished cement.
Energy supply poses the main operational risk. Cement production, particularly the kiln-based clinkerisation stage requiring temperatures above 1,400°C, is highly power-intensive.
Malawi’s electricity grid, heavily dependent on hydro generation from the Shire River, has suffered repeated disruptions due to droughts and cyclones affecting key stations such as Kapichira and Nkula, resulting in persistent load-shedding.
While the kiln is expected to operate on coal sourced domestically or from Mozambique, grinding, packing, and auxiliary operations depend on stable grid power.
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The plant begins operations as Malawi seeks to strengthen electricity supply through its recent interconnection to the Southern African Power Pool via Mozambique.
Should the grid fail to provide consistent baseload power, the factory may rely on expensive diesel backup or captive coal generation, raising costs that could be passed on to consumers.
Speaking at the inauguration, Finance Minister Joseph Mwanamvekha said the project aligns with the government’s “Malawi 2063” self-reliance agenda.
In addition to forex savings, authorities estimate exports to neighbouring markets could generate about $15 million annually, placing the company in competition with cement producers in Zambia and Tanzania.
Founded in 1956 and acquired by Huaxin in 2022, Portland Cement Malawi has undergone rapid modernisation.
The Balaka plant completes the domestic cement value chain and is viewed as a test case for Malawi’s ability to sustain heavy industrial investment amid persistent energy challenges.
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Image Credit: Hastings Msosa
