Cement shortage hits local market
Shortage of cement has hit the local market, with unscrupulous traders taking advantage of the situation by overpricing the commodity, a development that has a negative impact on the construction sector.
A Business News snap survey shows that traders are selling a 50 kilogramme bag of cement at K15 000, a 25 percent increase from the recommended retail price of K12 000.
In an interview yesterday, Minister of Trade and Industry Simplex Chithyola Banda confirmed the cement shortage, saying the ministry is engaging industry players to find a lasting solution to the situation.
He said the outcome of the engagement will shape the government’s policy direction to respond to the situation.
Said Chithyola Banda: “We are not just sitting idle. We have called for the cement producers to come up with a solution so that in the end, we can prevent prices from skyrocketing, which could hurt the many projects taking place in the construction sector.”
He warned that if the challenges persist, government would consider issuing import licences to lower the prices on the local market.
“Otherwise, for now, we will be inspecting the retail markets and any trader found offering exploitative prices will face consequences,” said Chithyola Banda.
Meanwhile, Shayona Cement Corporation, Cement Products Limited (CPL) and Portland Cement Malawi remain the only producers of cement in Malawi.
However, only Shayona Cement Corporation and Cement Products Limited are currently using locally mined limestone and iron ore to produce cement.
Officials from Portland Cement Malawi and Shayona Cement Corporation did not respond to questions on the reasons behind the current cement shortage.
But in an interview yesterday, CPL chairperson Aslam Gaffar said for two weeks now, their machines, which produce 1 000 tonnes of cement every day, have a breakdown.
Consumers Association of Malawi executive director John Kapito yesteday blamed lack of enforcement by the Ministry of Trade and Industry for the exploitative cement prices being offered on the market.
He said due to lack of foreign exchange, cement importation could also be limited.
As at October 2020, Shayona Cement Corporation was producing 900 tonnes per day but the company’s production capacity was being expanded to reach 1 800 tonnes per day by mid-2021.
On the other hand, Portland Cement Malawi has the capacity to produce 650 tonnes per day.
The country imports an average of about 750 tonnes of cement per day, translating to 15 000 bags of cement.
Construction experts say the continued shortage of cement, which is a critical ingredient in the construction sector, could have a negative impact of construction industry and the overall economic growth.
