Tuesday, February 15, 2011

AFRICA: ZAMBIA: More competition needed in cement sector - CCPC

THERE is need to enhance the existing level of competition in the cement industry that can lead to a more consumer choice, says the Competition and Consumer Protection Commission.

Commenting on Zambezi Portland Cement’s intentions to construct a new cement plant in Lusaka at a cost of US$120 million, CCPC public relations officer Vaida Bunda said the cement industry has continued to depict a dominant market structure which has not resulted in the lowering of the price of the commodity.

“The price of cement in Zambia remains relatively high at over US$10 (over K50,000) per 50 kilogramme pocket of cement. It is therefore hoped that the new plant will lead to greater economies of scale and enhance competition to a higher level and assist in reducing the price of this key input in infrastructure development,” she said.

Bunda expressed optimism that the Zambian consumers will soon have a wider choice in the cement industry with the prospective entry of Nigeria’s Dangote Cements, which is expected to build a factory in Ndola rural.

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