How PPC aims to extract $60m stuck in Zimbabwe
Ignoring the liquidity crisis, the cement producer’s business in the country grew strongly in the six months to end-September
Cement producer PPC is struggling to extract about $60m from Zimbabwe, which is in the midst of a liquidity crunch. The conclusion of Zimbabwe’s elections, following the ousting of former president Robert Mugabe, did little to shore up liquidity in the embattled nation.
“We will do everything in our power to get some of the money out in a legitimate way,” said CEO Johan Claassen. “We’ve been a very good citizen in Zimbabwe for about 18 years, through the ups and the downs, so I think we’ve got a strong case.” Bar the liquidity crisis, PPC’s business in Zimbabwe grew strongly in the six months to end-September. Revenues in that market grew 31% to R1.1bn thanks to higher volumes as consumers converted cash into fixed assets and the government spent more on infrastructure. The strong performance in Zimbabwe helped offset a difficult trading environment in SA, with group revenues growing 8% to R5.6bn. Southern African cement revenue, which includes Botswana, declined 4%...