Mining & Trade News

Chaos on Malawi cement market

By Bester Kayaye in Blantyre, Tawina Maluwa in Lilongwe and Tawonga Nyirenda in Mzuzu

Cement prices in the country have drastically shot up by about 33% as local producers and importers continue to struggle to meet the growing market demand which has prompted traders to take advantage of the deficit and overcharge buyers.

A snap survey conducted by Mining and Trade Review in the cities of Lilongwe, Blantyre and Mzuzu revealed that cement is now a scarce commodity in shops and those shops stocking the commodity are selling it at very high prices.

In Blantyre, a 50kg cement bag is being sold within the price range of between K8,000 and K10,000 a hike from K6,500 to K8,000 before August.

In Lilongwe, a 50kg bag of which used to be sold at between K6,000 and K7500 is now being sold at between K7,000 and K8,500 while in Karonga and Mzuzu, the shortage of cement has become critical which has forced traders to raise the price of the dominant local brand Shayona’s Akshar from K6500 to K7500, the same price they are selling Tanzanian brands of similar strength, 32.5 Newtons.

Consumers and cement traders say they want government to intervene on the shortage of cement on the market which importers attribute to scarcity of foreign exchange to import the product.

Lilongwe based KH Dealer Cement Suppliers Shop Owner Sanjay Savjan told Mining & Trade Review that government needs to facilitate that banks release enough foreign exchange for importation of cement because the shortage of the commodity has affected their businesses as they are selling lesser quantities.

“We are making loses because we are not selling much due to the scarcity of the commodity. This has forced us to raise prices in order to make to profits,” Savjan said.

MD for Muhamad suppliers Muhamad Ali told Mining & Trade Review that the shortage of cement is a big blow to their customers who rarely find the commodity in stock.

“Customers keep coming to purchase cement but most of them fail due to high prices or that the brands they are looking for are out of stock. We do not know what the problem is with those that manufacture cement including local companies that are now failing to supply us with adequate quantities,” Ali said.

Bu Communications Officer for Lafarge cement Chikondi Ng’ombe said in a separate interview that the company acknowledges the shortage of cement on the market and they are doing everything possible with urgency to resolve the matter.

“Our prices remained largely flat with average increase of 3% recently in August to partially offset the kwacha devaluation against the US dollar. The excessive increases in prices being felt on the market are from traders unfortunately taking advantage of the supply constraints,” she said.

Ng’ombe also denied claims that part of the firm’s machinery had a technical fault which led to the shortage of cement on the market as alleged by other traders.

Executive Chairman for Cement Products Limited (CPL) Aslam Gaffar also said his company has not raised cement prices attributing the development to the weakening of the US Dollar which has resulted in the rise of cement prices in Zambia where Malawi mostly imports the product.

Gaffar said; “Zambian cement prices are high because prices have also gone up there. With such higher landed prices, traders can only make a margin of K100 per bag, which is not attractive to them, hence the rush to get local cement, with higher profits.”

“Imported Cement was being sold at very low prices, now this has changed and imported cement is selling at very high prices. Since our prices, as local producers, are still low, traders are scrambling for our cement and selling at the same price as the imported brands of similar strength thereby making profits in excess of K2000 per bag.”

“The problem is the traders, not us the producers. They are creating a shortage so as to make huge profits.”

MD for Shayona Cement Corporation Jitendra Patel said there is a need for the government to facilitate arrangement of finances for limestone license holders to bring new cement plants on stream because it is a risk to be relying on neighbouring countries.

“There should be regular monitoring of illegal practices and ensure that any local industries – not only cement – are given total fair support – Then Malawi has a good future,” Patel said.

Coordinator for the Chamber of Mines and Energy Grain Malunga also called on government to provide incentives to local manufacturers such as facilitating provision of low cost and long term loans to increase production capacity other than relying on imports which has resulted in the current market challenges.  

Minister of Trade Sosten Gwengwe, however, said his Ministry is holding discussions with the Reserve Bank of Malawi to prioritise issuing forex to cement importers to deal with the shortages.

Lafarge imports clinker from neighbouring countries while Shayona Cement has a clinker plant in Kasungu and CPL in Mangochi.

115 thoughts on “Chaos on Malawi cement market

  1. My brother recommended I might like this blog. He was totally right. This post truly made my day. You can not imagine simply how much time I had spent for this information! Thanks!

  2. Hi there outstanding website! Does running a blog similar
    to this require a large amount of work? I’ve absolutely no knowledge of coding however I had been hoping to start my own blog in the
    near future. Anyhow, if you have any ideas or
    tips for new blog owners please share. I know this is off topic but
    I simply wanted to ask. Thank you!

  3. Hey there, I think your site might be having browser compatibility issues.
    When I look at your blog in Chrome, it looks fine but when opening in Internet
    Explorer, it has some overlapping. I just wanted to give you a
    quick heads up! Other then that, wonderful blog!

  4. Thank you for the auspicious writeup. It in fact was a amusement account it.
    Look advanced to more added agreeable from you! However, how could we communicate?

  5. Do you have a spam problem on this website; I also am a blogger, and I was curious about your situation; we have developed some nice procedures and we are looking to swap techniques with
    other folks, be sure to shoot me an email if interested.

  6. obviously like your web-site however you have to test the spelling on quite a few of your posts. A number of them are rife with spelling issues and I to find it very bothersome to tell the reality however I will surely come back again.

  7. Pingback: kardinal stick
  8. Meu programador está tentando me convencer a mudar meu blog para wordpress dizendo que é mais
    interessante . posso não estar certo mas esta página
    usa wp certo ? Você poderia comentar se
    realmente é bom ? ? Agradeço antecipadamente

  9. Hey there this is kind of of off topic but I was wondering if blogs use WYSIWYG editors or if you
    have to manually code with HTML. I’m starting a blog soon but have no coding skills so I wanted to get
    advice from someone with experience. Any help
    would be enormously appreciated!

  10. whoah this blog is magnificent i love studying your posts.
    Stay up the good work! You already know, lots of persons are searching round
    for this info, you can help them greatly.

  11. I am really impressed with your writing abilities and also with the structure on your blog.

    Is that this a paid topic or did you customize it your self?
    Either way stay up the nice quality writing, it’s rare
    to look a nice weblog like this one these days..

  12. We’re a bunch of volunteers and starting a brand new scheme
    in our community. Your web site offered us with useful information to work on. You
    have done a formidable job and our whole neighborhood can be grateful to you.

  13. This is very interesting, You’re a very skilled blogger.
    I have joined your rss feed and look forward to seeking more of your fantastic post.
    Also, I’ve shared your website in my social networks!

  14. A person essentially assist to make critically posts I
    would state. This is the very first time I frequented your website page and up to now?
    I surprised with the analysis you made to create this actual submit incredible.
    Great process!

  15. Hello just wanted to give you a quick heads up. The words in your post seem to be running off the screen in Opera.

    I’m not sure if this is a formatting issue or something to do with internet browser compatibility but I figured I’d post to let you
    know. The layout look great though! Hope you get the problem fixed soon. Cheers

  16. I’m really loving the theme/design of your web site.

    Do you ever run into any web browser compatibility problems?
    A few of my blog readers have complained about my blog not operating correctly in Explorer but
    looks great in Chrome. Do you have any ideas to help fix
    this problem?

  17. Everything published made a bunch of sense. But, what about this?
    suppose you added a little information? I mean, I don’t wish to tell you how to run your
    website, but suppose you added a post title that grabbed a person’s
    attention? I mean Chaos on Malawi cement market – Mining
    & Trade News is kinda vanilla. You might look at Yahoo’s home page and note how
    they create news headlines to get viewers interested. You might add a video or a related picture or two to grab readers excited about
    everything’ve got to say. In my opinion, it might bring
    your posts a little livelier.

  18. I absolutely love your blog and find a lot of your post’s to be exactly what I’m looking
    for. can you offer guest writers to write content
    for yourself? I wouldn’t mind producing a post or elaborating
    on most of the subjects you write in relation to here.
    Again, awesome blog!

  19. I am really enjoying the theme/design of your blog.

    Do you ever run into any internet browser compatibility issues?
    A handful of my blog readers have complained about my website not operating correctly
    in Explorer but looks great in Safari. Do you have any recommendations
    to help fix this problem?

  20. Hey there! This is kind of off topic but I need some help from an established
    blog. Is it tough to set up your own blog? I’m not very techincal but I can figure things out pretty fast.
    I’m thinking about creating my own but I’m not sure where to
    start. Do you have any points or suggestions? Appreciate it

  21. I have been surfing on-line more than three hours as of late, but I by no means found any fascinating article like yours. It is lovely worth enough for me. Personally, if all webmasters and bloggers made excellent content material as you did, the web will likely be a lot more helpful than ever before.

  22. I’m not positive where you’re getting your information, but good topic.
    I needs to spend a while finding out more or working out more.
    Thank you for excellent information I used to be in search of
    this information for my mission.

  23. I really love your site.. Very nice colors & theme.
    Did you develop this website yourself? Please reply back as
    I’m hoping to create my very own site and would like to know
    where you got this from or exactly what the theme is called.
    Kudos!

  24. magnificent submit, very informative. I ponder why the other experts of
    this sector don’t notice this. You must continue your writing.
    I’m confident, you have a great readers’ base already!

  25. I like what you guys are up also. Such smart work and reporting! Carry on the superb works guys I’ve incorporated you guys to my blogroll. I think it’ll improve the value of my web site :).

  26. Howdy! I know this is kind of off-topic however I needed
    to ask. Does managing a well-established website like yours take a
    massive amount work? I’m completely new to running a blog however I do write in my journal on a daily basis.

    I’d like to start a blog so I will be able to share my own experience
    and thoughts online. Please let me know if you have any ideas
    or tips for brand new aspiring bloggers. Thankyou!

  27. Pingback: super viagra
  28. Hello, i read your blog occasionally and i own a similar one
    and i was just curious if you get a lot of spam remarks?

    If so how do you prevent it, any plugin or anything you can advise?
    I get so much lately it’s driving me insane so any assistance is very much appreciated.

Leave a Reply

Your email address will not be published.