AFRICA: ZIMBABWE: Cement Prices Shoot Up

CEMENT prices have shot up over the past few weeks as dealers take advantage of shortages caused by a major plant breakdown at Lafarge.

Traders are now selling a 50kg bag at between US$16 and US$20. The recommended average price is US$12,50 a bag.

Lafarge Zimbabwe confirmed yesterday that one of its two mills was down.

Lafarge managing director Mr Jonathan Shonhiwa said it was unfortunate that some retailers were taking advantage of the shortage to exploit customers.

"We are currently operating one cement mill as the other one has broken down," said Mr Shonhiwa.

"The cement mill breakdown has resulted in shortages on the market (since) we are a major player."

He said the company was working "flat out" to restore normalcy.

"Very few people are getting the product through normal channels," said one dealer.

"There are now some middlemen who are selling cement to us at prices that are even higher than the recommended retail prices."

The recommended retail price for masonry is US$9,79 and US$10,79 for PPC.

The cement shortage has come at a time when the construction industry is beginning to pick up as a result of steady recovery of the economy.

This could push up building costs if the shortages are not addressed soon.

President of the Construction Industry Federation of Zimbabwe Mr Philip Chiya-ngwa, who is also a shareholder at Lafarge, said he was going to investigate what was pushing the prices up.

A survey by The Herald yesterday revealed that most retailers in Harare did not have cement.

Workers at Farm and City said when in stock, PPC15 costs US$15 per bag, Masonry US$12 while at Mohammed Mussa Wholesalers PPC sold for US$13,50 and Masonry US$12,50 when in stock.

Retailers at Magaba and Msasa were demanding between US$16 and US$20.

The Herald was yesterday inundated with calls from people seeking to know what had triggered the price increase.

"My builder had just started working on the foundation and my budget has been seriously affected. I had budgeted US$1 200 for 100 bags of cement needed for the slab and I do not know what I am going to do," said Mr Samuel Shango of Kwekwe.