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The government has issued cement importation licenses to producers as a move to enhance supply and control over prices.
The production shortages of cement in the past months have seen dealers in the commodity taking advantage of the situation by hiking prices to about three times the normal price.
Vice President of the Zimbabwe Building and Construction Association (ZBCA) Dr Tinashe Manzungu said of late, demand for cement has exceeded the supply by huge proportions.
Manzungu welcomed the decision saying, the importation licenses will help ease the challenges being faced in the country and if it can be advanced to contractors in the industry and open up more to producers and manufacturers it will help ease the prices with competition.
“The industry has faced persistent challenges of cement availability. Dealers are taking advantage of the situation by hiking prices of cement and sometimes by three times more charging $25 per bag whereas, the normal and local charge should be $ 7 per bag. This is the reason why there is a dent in the availability of cement,” he said.
Dr Manzungu added, “The demand for cement is higher than the supply and this affects our agenda of improving the infrastructural gap which we are supposed to fulfil in the next four to five years towards the vision 2030”.
“If the ministry could open up more licenses that could create more competition and bring the price down, whilst our local manufacturers are also getting back to their position where they will be able to supply,” Manzungu said.
Industry and Commerce Deputy Minister, Honourable Roy Bhila revealed that plans are underway to improve the cement supply situation within two weeks.
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