Leafias Mazviro
Beta Bricks Limited, a top bricks manufacturer, is planning to open the Steel 90 plant in Melfort. The new plant will allow the company to make 18-24 million bricks this year once it is operating at full capacity.
Currently the company have capacity to produce 6 million bricks a month, lagging behind demand. The bricks plant is set for commissioning in September this year.
According to the latest press statement released by the Company, the Company has failed to meet bricks demand during the period due to under-incapacitation.
The company, last year, embarked on the major two projects which saw the company installing third plant in Mount Hampden.
However, Beta Bricks looks to expand its production capacity, it may face several challenges such as electricity shortages and rainfall variability due to climate change. Besides that, the company still faces competition from its main rival, Willdale Zimbabwe Limited.
Although the government of Zimbabwe said the country is now electricity self-sufficient, data on the ground is speaking another tone. Most of the power comes from Kariba Power Station which relies on natural rains.
Against the advent of climate change, electricity self-sufficiency remains a myth. Besides, Hwange Thermal Power Station remains relying on ageing power plants which are not reliable.
On the other hand, some analyst said the Company need to consider the opportunity cost of investing in renewable energy to avoid supply gaps.
Beta Bricks can invest in renewable energy sources such as solar power, which can provide a reliable source of electricity while reducing its dependence on the national grid.
The company can install solar panels on its rooftops and invest in energy storage systems to ensure that it has a constant supply of electricity, even during times of power outages or shortages.