Some Cement distributors have confirmed that Lafarge has hiked its Cement prices and that they have received communication to that effect. Cement price is a key determinant in the cost of construction.
And speaking in an exclusive interview with Zambian Business Times – ZBT, Lafarge Corporate Affairs and Communications Manager Sarah Banda-Ortiz on 21 January 2021 disclosed that” the company is currently evaluating the business impact of several economic variables that have changed in the operating environment since its last price adjustment in July 2020.
Notable among these, is the continued devaluation of the local currency, recent changes in legislation which has a direct impact on the company’s operational costs and the depletion of gypsum reserves locally. We therefore believe that these factors many necessitate a change in our pricing.”
Banda-Ortiz explained that the implementation of SI 106 of 2020 that puts into law the increase of salaries and allowances for truck drivers coupled with SI 125 which effectively revises both diesel and petrol costs to corporates will also impact their transportation costs, for inbound and outbound shipping as well as energy production costs. She added that, the aforementioned will have a significant negative impact on their total costs of production.
Furthermore, she said that sourcing locally of all available inputs and services is their number one priority as Lafarge Zambia. However, the depletion of reserves at their local source, Chambeshi Metals, leaves them with no option but to find alternative sources in the manufacture of quality cement.
She said that Lafarge operates with local transporters and contractors, and has more than 4,000 shareholders, employs more than 900 people both directly and indirectly and has a direct impact on over 8,000 families that benefits from activities related to the business.
Banda-Ortiz said that ”as the country’s leader in building materials and solutions, we remain committed to providing quality building materials to all Zambians.” Lafarge Zambia is the leading supplier of building materials in Zambia.
The company operates a network of facilities, which includes two integrated cement plants (with a combined capacity of 1,500,000 tonnes per anum) in chilanga and Ndola, and distributes by road and rail to all corners of the country and Southern DRC.
Concerns are that Larfarge Zambia being a market leader will trigger similar Cement price hikes across Zambia. The last adjustment resulted in the Zambian competition and consumer protection commission – CCPC investigating the top four industry players on suspected collusion. CCPC is yet to release its findings.
