Cement shortage hits parts of Malawi

Consumers are being forced to dig deeper into their pockets to purchase cement following an increase in the market price of the product.

Spot checks in Mangochi and some parts of Salima and Blantyre have revealed that there is a shortage of the commodity on the local market. As a result, some vendors are selling the commodity at K8,000, which is K1,300 more than the recommended price of K6,700.

In Mangochi, the product has disappeared despite the district being a product site for Cement Products Limited (CPL).

One of the customers who wanted to buy the product in Mangochi complained that he was forced to buy fewer bags as prices have increased unexpectedly.

Reacting to the development, CPL Chairman, Aslam Gaffar, said shortage of the product and its subsequent increase in price is a result of the increasing prices of clinker in Dubai and other countries.

Gaffar said his company and other local cement manufacturing companies have decreased quantities of clinker imported from abroad because the prices have risen by over 20 percent, which is making it difficult for local companies to meet the local demand.

“On our part, we cannot raise cement prices because we understand that the market is still the same. The economy of the country cannot accommodate prices beyond the current mark-up. But vendors are taking advantage of the shortage to increase prices,” Gaffar said.

However, the CPL chairman said that there is hope that things would improve because his company’s clinker factory will be ready in the next two to three weeks if everything goes according to plan.

“Our only biggest challenge is electricity supply,” he said.

Malawi has for a long time been importing clinker, a big component in cement manufacturing process, from abroad. However, CPL and Shayona are building their clinker factories in Mangochi and Kasungu.

According to Gaffar, CPL will be selling its cement at K5,700 per bag once the clinker factory is completed.