Khayah Cement, the country’s second largest cement producer, plans to delist from the Zimbabwe Stock Exchange (ZSE) as it tries to recover away from the public eye.
Fossil Mining bought the company, then known as Lafarge, from Holcim in 2022 for US$29.7 million, hoping to take advantage of strong cement demand. But in 2024, the company entered voluntary business rescue — the result of inherited debt, delayed maintenance, management inefficiencies, and the impact of US sanctions on its parent shareholder, Fossil.
Now, Bulisa Mbano of Grant Thornton, appointed as the Corporate Rescue Practitioner, says Khayah must exit the public market to survive. Leaving the ZSE will allow Khayah to move faster on crucial tasks — negotiating with creditors, trimming costs, and restructuring operations — without the disclosure obligations and public scrutiny that often make such moves harder.
“This agility is crucial for executing time-sensitive actions, such as cost-cutting initiatives or operational realignments, which are pivotal to the company’s rehabilitation,” Mbano said.
Fossil inherited a debt burden of US$11 million from Holcim’s local operations. According to Mbano, delisting will allow the company to restructure without the disclosure requirements that come with a public listing.
The company’s delisting echoes a broader trend in Zimbabwe’s capital markets: a slow exodus of industrial firms from public exchanges, and a pivot by companies toward more private pathways to restructuring.
Khayah’s assets include two main plants — a Vertical Cement Mill, currently operational with an annual installed capacity of 700,000 tonnes, and two ball mills, Cement Mill 1 and 2, which are currently mothballed but have a combined capacity of 450,000 tonnes per annum. Its kiln, which has an installed clinker capacity of 26,000 tonnes per month, was three years overdue for major maintenance when Fossil took over.
Beyond cement, Khayah also operates a Dry Mortar Division (DMO), which produces tile adhesives, with a total capacity of 100,000 tonnes per year.
The company’s limestone quarries have an estimated life of mine of 13 years. Khayah also holds mining claims in Hurungwe and Mbubu, potentially extending its limestone resources beyond the current mines.
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