HARARE – New allegations have emerged accusing businessman Kudakwashe Tagwirei and his associate Obey Chimuka of contributing to the deterioration of Zimbabwe’s cement industry through opaque acquisitions, market dominance tactics, and mismanagement.
According to sources familiar with developments in the construction and cement sectors, Chimuka is said to have acted as a front for Tagwirei during the controversial takeover of Lafarge Cement Zimbabwe, which was later rebranded as Khaya.
The acquisition is described as part of a broader strategy to consolidate control of the road construction value chain, following earlier takeovers of companies such as Masimba and Fossil.
Industry insiders allege that companies linked to Tagwirei subsequently secured a disproportionate share of lucrative road construction contracts, often at inflated costs to the State, while sidelining competitors. Firms outside the network reportedly struggled to survive due to delayed payments and financial pressure, whereas those aligned to Tagwirei were prioritised.
Sources further claim that Khaya’s operations rapidly deteriorated after the acquisition, citing poor governance, lack of capital, and declining production. Frequent breakdowns at the manufacturing plant and low staff morale allegedly pushed the company into business rescue, leading to a sharp reduction in cement supply and the eventual disappearance of Khaya products from the market.
As a result, cement prices reportedly surged dramatically, reaching as high as US$16 per bag locally compared to approximately US$6 in neighbouring Zambia.
It is further alleged that attempts by foreign investors, including Dangote, to enter Zimbabwe’s cement market were frustrated by efforts to maintain control of the industry, contributing to the current supply constraints and elevated construction costs.
In recent weeks, Chimuka has reportedly overseen the donation of 18 truckloads of cement, a gesture critics describe as insufficient to address deeper industrial challenges. Economic analysts argue that Zimbabwe needs sustainable production capacity, transparent market competition, and stable pricing rather than symbolic gestures.
Neither Tagwirei nor Chimuka has publicly responded to the allegations, and authorities have not issued any official comment.
