Bulawayo City Council in Zimbabwe has cancelled a lease awarded to for a proposed cement-mixing plant after the Chinese-owned company failed to complete the lease-signing process.
The project, planned for Umvumila Industrial Park near the city’s United College of Education, had been approved in October 2024 but saw no progress despite repeated reminders from the city.
Labenmon Investments (Pvt) Ltd had agreed to lease two industrial stands for the development of the plant, but the council resolved to withdraw the offer after the developer did not finalise the agreement.
The proposal had already attracted significant controversy. Deputy Mayor Edwin Ndlovu and Finance Committee chairperson Councillor Mpumelelo Moyo were arrested by the Zimbabwe Anti-Corruption Commission on allegations they solicited a US$20,000 bribe from visiting Chinese investors linked to the project.
Ndlovu was later acquitted, while Moyo was convicted and sentenced to 18 months’ imprisonment before being granted US$200 bail pending appeal.
Further concerns emerged within the council after a delegation visit to a cement facility in Mozambique reportedly presented as being affiliated with Labenmon. Business and Investment Committee chair Councillor Mxolisi Mahlangu later disputed this, warning that “giving Labenmon Investments credit for an operation that was not theirs would prejudice council.”
The council has now repossessed the land, with officials indicating that the stalled project and unresolved governance issues made continuation untenable.
Earlier this year, Zimbabwe's Environmental Management Agency fined Labenmon Investments US$5000 for breaching environmental regulations at its Wih-Zim cement plant in Magunje, Hurungwe district.
