Online Reporter
Martin Kadzere
Cement prices in Zimbabwe have increased by 42 percent over the past two months due to an “unprecedented” boom in construction activity, compounded by constraints on local supply and imports.
Prices have surged to about US$17 from US$12 per 50 kg bag, a survey by this publication reveals.
The steep price hike-equating to a US$5 increase per bag-is being attributed to a combination of soaring demand, the exhaustion of import quotas by some traders and chronic production struggles at the local manufacturing plants, some industry players have said.
“Demand is very high and remains strong even if prices keep on rising,” a cement trader in Harare noted.
Historically, construction activity peaks between April and November, just ahead of the rainy season, but this year’s demand-driven by both home building and commercial construction-has been described as incomparable to previous cycles.
“This happens almost every year, but this time, it has been unprecedented,” said Mr Forum Gwatidzo, a hardware operator in Harare.
While Zimbabwe primarily imports cement from neighbouring Zambia, these inflows have dropped sharply as some major importers have exhausted their allotted import quotas, effectively squeezing external supply just as domestic need accelerated.
Despite Zimbabwe’s cement industry possessing an installed production capacity of about 2,6 million tonnes annually, output has been volatile as some major producers have been struggling with various operational setbacks, including crippling power shortages and aging equipment.
Khayah Cement, in particular, has faced financial distress and production stoppages, further reducing local stock.
The market remains tight, putting pressure on large infrastructure projects and individual builders alike.
Relief, however, may be on the horizon as ongoing investments aim to boost capacity. The new Huaxin cement plant in Chegutu, expected to begin operating during the first quarter of next year, is projected to churn out an additional 800 000 tonnes per year of capacity once fully operational.
