Zimbabwe's cement prices skyrocket

Cement prices in Zimbabwe have hit a new high with 50kg bags being sold for US$20-25 on the black market compared to the authorised retail prices of US$11.50/bag for ordinary Portland cement and US$10/bag for masonry cement.

A statement released by the Cement and Concrete Institute of Zimbabwe (CCIZ) last week indicated that the industry may not be able to cope with the rising demand, estimated at 30 per cent year-to-date since the same period last year, unless foreign currency shortages were addressed to reduce plant downtimes.

"The sharp rise in demand requires that all cement manufacturers operate their plants at 100 per cent capacity utilisation to satisfy the market. This is, however, not possible due to incessant plant breakdowns caused by spares shortages, said the CCIZ.

"Under the current economic conditions, the industry has been facing significant challenges in procuring spare parts from foreign suppliers as access to foreign currency remains difficult.

"This has, therefore, caused delays in the turnaround time for attending to breakdowns, limiting our capacity utilisation significantly. We are appealing to relevant arms of government to assist in facilitating priority allocation of foreign currency so as to expedite procurement of the required spares and equipment."