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Business Reporter
LAFARGE Cement Zimbabwe says the recent spike in demand for cement, which resulted in a supply backlog on the market, is a positive signal of economic growth.
In a statement, the firm allayed public fears over shortages of the commodity and price increases saying the prevailing backlog in supply was temporary and that the situation would ease out in the coming weeks.
“The consumption spike being witnessed is a very positive economic growth indicator, which may be attributed to a rise in mortgage finance as well as improved disposable income following a successful tobacco and maize farming season on the back of the Command Agriculture Programme, said Lafarge.
Some retailers had taken advantage of the shortage, which manufacturers attributed to technical setbacks following maintenance works, to increase prices by more than 50 percent.
In some places cement was being sold for between $15 and $20 from the usual $10 to $11.
As a company rooted in Zimbabwe with many years of operations, the company said it was excited by the developments in the market and was capable to meet customer needs.
It warned the market against the lure of trading cement on the black market.
“The prices of our cement have not been adjusted upwards, therefore any price hike by retailers is unjustifiable. The parallel market causes unnecessary panic and destabilises the economy, which burdens individual income and is ultimately regressive for national economic growth,” it said.
PPC and Sino Zimbabwe Cement have also ruled out any increase in prices.
Online Reporter