Cement prices stay high despite local production

Despite the massive appreciation of the Kwacha in the recent past, cement prices remain unchanged, a concern that the official shared, stating that the expectation was a reduction and translation into lower building costs.

The official also expressed concern that cement prices had remained high despite the kwacha’s appreciation, arguing that improvements in the exchange rate had not translated into lower building costs.

“They usually say it’s tied to the exchange rate and other factors, but when these things improve, the cost does not come down. It continues to push up building costs,” the official said.

Beyond cement prices, the official identified inflation and unpredictable construction costs as major challenges facing contractors, particularly those undertaking long-term projects. The official said contractors who enter into agreements based on prevailing material prices risk incurring additional costs when prices rise during construction.

“The biggest thing affecting us in the construction sector is inflation. As a contractor, you sign a contract at the prevailing price, but costs can change while the project is underway, and you end up being hammered, especially on long-term projects,” the official said.

The official further claimed that building costs had increased by between 15 and 20 per cent, warning that fluctuations in the exchange rate could create challenges for both contractors and clients.

“Recently building costs increased by between 15 and 20 percent. The continued concerns over cement prices raise questions about the factors determining local prices and whether competition among manufacturers is delivering the expected benefits to the construction industry and prospective homeowners.

Article by Samuel Mutale