The Competition and Consumer Protection Commission – CCPC has exclusively disclosed to the Zambian Business Times – ZBT that market prices for cement in Zambia will have to conform to the issued directive to cut cement prices by the ninth of next month (9 May 2021).
The CCPC Board directed Zambia’s top cement producers Lafarge Zambia Plc, Dangote Cement Zambia Limited and Mpande Limestone Limited – commonly known on the market as Sinoma Cement to revert to the pre-cartel prices which effectively takes effect 30 days after the parties receive the board decision.
According to information made available to the Zambian Business Times-ZBT, CCPC Senior Public Relations Officer Namukolo Kasumpa, the three companies confirmed receiving the board decision on 8 April and have a 30 days window period [to comply], which is still open given the date the parties received the board’s decision.
The commission has ordered the slashing of cement prices from the current average prices of K140 per 50kg bag of cement to a range of between US$4.5 to US$5 which translates to K110 per 50kg bag at the current exchange rate of K22 per 1 US dollar.
Zambian consumers and constructors will then be able to have the advantage of 21% price reduction, a scenario that will aid the completion of several infrastructure, housing and other building projects.
The CCPC board ordered Lafarge Zambia Plc, Mpande Limestone and Dangote cement to revert to the pre-cartel prices ranging between US$4.5-US$5 for a period of up to 1-year effective date of receipt of the board decision.
A check with Pafriw Hardware, one of the new hardware mega stores by ZBT confirmed that cement prices have started going down as a 50kg bag of Lafarge and Sinoma Cement were being sold under promotion for K125 and K120 respectively.
A source within the company who requested for their name to be withheld told ZBT that the hardware megastore has initiated the promotion in anticipation of the reduced order prices. However, other distributors for the large cement brands are still in the dark as to when the new prices will be effected.
See also other articles by ZBT on cement prices Cement prices slashed by 21%
