Cement prices on the Zambian market have for the first time resulted into what some members of the public have described as an unexpected steep increase by more than K20 per 50Kg resulting into a public outcry and accusation of market collusion.
Previously, cement price hikes were mainly attributed to the Kwacha depreciation which has this time around remained stable albeit at an elevated level. Cement price manufactures had indicated that their manufacturing costs were mainly US dollar based.
A random market survey conducted by the Zambian Business Times – ZBT on July 29, 2020, has revealed that most members of the public involved in construction of both residential and commercial buildings are negatively impacted as cement prices have suddenly jumped from K98 for a 50Kg to K120 and K125 for the Lafarge Mpamvu brand in the last one week.
Some traders talked to in Lusaka from Kalingalinga roadside market, Chelstone and Chalala have expressed disappointed at Lafarge and Dangote cement for the recent hike in prices indicating that it is the first time that cement companies have hiked prices by more than K20, when previously the increases would be by a K5 to K10.
A Lafarge trader who asked for his name to be withheld could told ZBT in an exclusive interview that manufacturing companies gave an order last week stating that prices should be hiked with immediate effect but did not give reasons to back the move.
ZBT’s survey further revealed that major cement brands like Lafarge, Dangote and Sinoma have all increase by a similar margin and none of the manufacturing companies stated their reasons for the increase to their distributors.
Efforts to get a comment from the Competition and Consumer Protection Commission – CCPC proved futile as their public relations manager Namukolo Munyeme-Kasumpa was still waiting for clearance from the director responsible.
And a Dangote trader from Chalala in Lusaka revealed that the increase has hugely affected business on the market and that it has disadvantaged most customers from buying the commodity due to the hiked prices.
The trader said others have been left with no option but to purchase the commodity with fear of it increasing further in the near future as she anticipated a continued rise in cement prices on the market.
“Initially Dangote cement prices increased and the reason that was being attributed was that the company was refurbishing its factory and its prices would revert back, but what we have seen is that its not going back,” She added.
The cement main ingredient, limestone is locally manufactured and members of the public have challenged the Cement Companies to clearly explain the factors leading to the recent hike as this move may just be a profit maximizing decision at the expense of consumers.
CCPC which is the arm responsible for investigating such actions is mute on this increase as most of the officers and directors are working from home, hence taking time to revert on what actions if any has been taken.
CCPC is mandated to investigate such economically sensitive matters on behalf of the general public and clear the air after professional and legal investigations are done. The cement market has dominant players making the industry fertile for collusion.
