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Home » Cement crisis ‘snuffs out’ construction momentum

Cement crisis ‘snuffs out’ construction momentum

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THE Zimbabwe Building and Construction Association (ZBCA) says disruptions in the supply of cement have significantly slowed momentum in the sector, which had gathered pace.

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This comes as the industry has been on a rebound following Covid-19, which saw a number of projects coming to a halt due to movement restrictions. It also comes as the government has lifted restrictions on cement imports into the country as a response to surging demand and depressed local production.
According to ZBCA president, Petros Kagwere, the cement shortage is posing a major challenge as most projects are now at a standstill, with those that continue seeing costs rising.
“We hope this challenge is resolved quickly so as not to disturb the momentum the construction industry has gathered.
“We urge the government to engage with cement manufacturing companies to work together urgently to mitigate this challenge,” Kagwere said.
Cement prices in the country have risen sharply due to various factors, including major plant shutdowns and the expiry of import licences. A 50 kg bag now fetches around US$20, up from US$9 two months ago.
The Industry ministry said two of the country’s leading cement producers, Lafarge (now Khayah) and Sino, were having problems with production issues and had been given  import licences.

Sithembiso Nyoni, Industry Minister

The situation has been worsened by high demand on the back of government infrastructure projects and a surge in home builders.

“We are looking into the issue, some of our manufacturers are retooling and revamping their machinery and as they work on this, we are trying to find solutions to the shortage of cement,” minister Sithembiso Nyoni said.
Meanwhile, the Industry ministry said it would have an administrative arrangement with the Zimbabwe Revenue Authority to alleviate cement and fertiliser shortages in the market.
“The arrangement will allow importation of 100 x 50kg bags (SMT) of cement and 100 x 50kg bags (SMT) of fertiliser.
“This arrangement will be implemented with immediate effect. Companies or individuals will be allowed to import fertiliser and cement …up to December 31, 2023 without the requirement of an import licence. Quantities above this will require import licences from the ministry.
“This does not apply to commercial imports,” the ministry said in a statement this Wednesday.
Zimbabwe’s combined annual cement production capacity currently stands at 2,6 million tonnes, while demand has been steadily rising over the years due to the construction boom currently underway.
newsdesk@fingaz.co.zw

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