Cimentos de Moçambique increases prices 5-10%

Cimentos de Moçambique, Mozambique’s largest cement producer, has raised its prices by 5-10 per cent.

The lowest price rise recorded in the company’s two plants in Matola, southern Mozambique. The price of a 50kg bag of cement rose from MZN347 (US$4.49) to MZN364.

In the northern port of Nacala, price increases were higher, from MZN390 to MZN429/50kg bag, while at the central Mozambican town of Dondo a similar price hike of 10 per cent was carried out.

The company has attributed the increased to the depreciation of the metical, which has led to higher costs of raw materials such as clinker, which the company imports. The cement producer also claimed that between September 2015 and September 2016 production costs have risen by 50 per cent, but the price of cement only by 32 per cent.

Retail prices are substantially higher and had started to rise well before the latest manufacturer price rise. At the end of September, a price of MZN375/50kg bag was noted in Maputo’s retail outlets. A few days ago, before the latest price rise, this increased to MZN400.