THE Zimbabwean government has returned 418 hectares of land to PPC Zimbabwe Limited — more than a decade after initially seizing it — at a nominal value of R37 million (US$2,09 million), businessdigest can reveal.
In 2012, authorities expropriated 530 hectares from the cement producer.
However, in December 2024, the government reversed part of that decision, formally transferring 418 hectares back to the company via a Deed of Transfer.
According to PPC Limited, the cement producer's South African parent company, the remaining 112 hectares are still outstanding.
As of March 31, 2025, the government has yet to identify alternative land for compensation.
The restitution was disclosed in PPC’s audited financial results for the year ended March 31, 2025, with independent auditor PricewaterhouseCoopers Inc (PwC) confirming the transaction.
“PPC Zimbabwe Ltd, a subsidiary of the PPC Group, received a free grant from the government of Zimbabwe in the form of 418 hectares of land, measured at a nominal amount of R37 million,” PwC report reads in part.
“The land located in Zimbabwe was previously owned by PPC Zimbabwe Ltd and expropriated by the government of Zimbabwe in 2012. In December 2024, the government of Zimbabwe granted to PPC Zimbabwe Ltd the land without any conditions.”
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PwC said International Accounting Standard (IAS) 20 was applicable on initial recognition of the land, since the free grant meets the definition of government grants in terms of IAS20 and was provided unconditionally to PPC Zimbabwe.
“At year end, the PPC Group could not determine a reliable fair value for the land and, therefore, recognised the land at its nominal amount,” PwC added.
In addition, as at March 31, management had not determined use for the land, and, therefore, in terms of IAS40, land currently held for an undetermined future use was considered investment property.
PPC Zimbabwe’s total assets as of March 31 were R3,04 billion (US$171,58 million), an increase from R2,87 billion (US$162 million) in the comparative prior year.
“The transfer of the land was initially recognised at a nominal amount of R37 million in terms of IAS20 and classified as investment property in terms of IAS40 as of March 31, 2025,” PwC said.
“The recognition of the land resulted in a corresponding gain of R37 million in the statement of profit or loss for the year ended March 31, 2025. There were no tax consequences for the grant of the land in terms of the applicable tax rules.”
PPC holds 88% of PPC Zimbabwe with the remainder held by the indigenous party, the National Indigenisation and Economic Empowerment Fund.
However, the fund is only entitled to 5% of any dividends.
“PPC’s operation in Zimbabwe reported a 5,5% decrease in sales volumes compared to the prior year. In the second half of financial 2024, imports in the country normalised and volumes in the second half of financial year 2025 recovered to almost the comparable period levels,” PPC said.
While revenue for the year declined by 6,7% to R3,122 billion (US175,6 million), profitability improved significantly due to reductions across all cost categories — variable, fixed, and administrative expenses.
Profit after tax rose 46% year-on-year to R470 million (US$26,5 million), despite a 5,5% drop in sales volumes.
This was supported by a 14,4% reduction in cost of sales and a R46 million (US$2,6 million) decrease in administrative and operating expenses.
