There is a need for increased investments in the cement industry in Zambia in order for prices of cement to stabilise, says the NCC. Injecting funds into small-scale production is seen to be particularly important to increase the amount of cement on the market.
Instability and a decrease in prices of cement is said to be due to an increase in production of manufacturing industries. Cement retailers are offloading excess stock, caused by a decline in construction during the rainy season, by reducing prices. The solution to stabilise cement prices is said to be investment in the industry which will result in more cement for the local market.
Prices of cement
- Cement prices on the Zambian market have declined by more than ZMW13 per 25 kg bag.
- In Ndola, prices are between ZMW69 and ZMW72 for 25 kg.
- Lusaka is seeing prices of ZMW72 per 25 kg bag of cement.
Industry insiders have said that the Zambian government was targeting at least five potential investors to fund and set up cement plants. The three plants currently in operation in Zambia, run by Lafarge and Zambezi Portland, are not producing enough cement to meet increasing demand. The Zambezi Portland plant in Ndola produces 1400 tpd and the two Lafarge plants in Ndola and Chilanga produce 1.23 million tpa combined.