Chronicle Editor
Business Reporter
CEMENT producer, Lafarge Zimbabwe, says the prevailing spike in cement consumption is a positive economic growth indicator attributable to a rise in mortgage financing and improved disposable income on the back of a good agricultural season.
In a statement, the company said the supply side backlog being experienced on the market was temporary and was expected to ease out in the next few 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.
“As a company well rooted in Zimbabwe . . , Lafarge is excited by this development in the market,” it said.
The manufacturing company last week launched its US$2,8 million Dry Mortars (DMO) project in Harare, which is expected to improve the company’s manufacturing capacity of dry mortar products from the current 7 000 tonnes to 100 000 tonnes per annum. The current aggregate national demand for dry mortars is about 100 000 tonnes, including imports from the region.
Online Reporter