Government’s major infrastructure projects are severely impacted by the shortage of cement that has hit the country, the Minister of Finance, Economic Development and Investment Promotion, Mthuli Ncube, has said.
In order to address the artificial cement shortages that have caused some products to more than double in price and increased construction costs, the Cabinet was forced by the shortages to permit individuals and businesses with free funds to import cement.
“We need to ease the supply constraints. With the shortage of cement, the prices that have shot up , naturally, this is affecting the progress of some the government’s major infrastructure projects,” said Ncube
The prices of cement have doubled in the past months due to different reasons.
Cement bags weighing 50 kg used to cost between $9 and $10, but they now cost $20.
A number of factors, including plant malfunctions and planned maintenance at the nation’s largest cement producers as well as the expiration of import permits, are contributing to the increase in cement prices.
The government has been granting import permits to cement manufacturers; however, a large number of these permits have expired, which has resulted in a decline in imports and an even tighter supply of cement.
Cement demand increased as a result of infrastructure development, according to a statement from PPC Zimbabwe, the nation’s largest cement manufacturer. The government has a number of major infrastructure across the country , such as dam construction and road rehabilitation.
As a result, the amount of cement consumed this year increased to 1.6m tonnes from less than 1m tonnes in 2017.
Due to production costs and plant malfunctions, Zimbabwe’s cement manufacturing companies are unable to produce enough cement.
