IS it not interesting to note that while prices of a good number of commodities are said to be going up, the price of cement, which is one of the most important materials in construction, is going down?
The aforesaid situation has been compelled by Government’s prudent measures set to create an environment where competition ultimately benefits local buyers.
Not only has production of cement among the three cement producing companies increased, but the firms have also increased selling points and created job opportunities.
Larfage, Zambezi Portland and now Dangote are now competing in the production and distribution of cement in Zambia and beyond.
A survey taken recently revealed that prices of cement that at one time had gone up to as high as K98 has reduced to K58 on average.
Thanks to Government policy to liberalise and open up the market, a move that encourages competition, enhance products and services to the benefit of end users.
Larfage Zambia has in the recent past improved new cement-making plants, machinery and opened new selling points across Zambia.
Zambezi Portland Cement also increased production of cement to 1,500 tonnes per day following the investment into machinery worth US$4 million.
Zambezi Portland Cement even went a step further by slashing the price of cement from K66.00 to K58.50.
Zambezi Portland Cement operations director Daniele Ventriglia was recently quoted that the company had acquired state-of-the art equipment and subsequently increased production to 1,500 tonnes per day from 1,100 tonnes per day.
He said the ZPC management was geared to maintain the seamless supply of cement onto the Zambian market by increasing production, hence the decision to invest in new machinery worth $4 million.
Dangote Cement did not mince words, when prior to commencement of production, warned of competition in the industry and has since proved that fact.
The Zambia Consumer Association is on record to have praised the coming of Dangote Cement to Zambia, saying it would reduce the cost of cement on the local market.
Cement price reduction aims to serve the Zambian construction sector by ensuring that the market continuously receives cement without any burden.
Credit goes to the Zambian Government for creating such a deliberate policy at a time when construction of roads and buildings is at peak.
One would have thought that going by the notion of increased prices, whenever demand for any commodity was high, the opposite prevails in Zambia to the benefit of local consumers.
As a result of reduced prices of cement, Zambia has not only seen massive infrastructure development but encouraged local people to build own houses and create jobs. OPINION