Retailers in and around Harare have hiked prices of cement, taking advantage of the shortage of the product on the market as demand continues to soar.
A snap survey by NewsDay showed on average a bag of cement regardless of the brand costs $13 per 50kg bag.
Some retail companies are reportedly selling for as much as $17 a bag especially in outlying areas.
One of the leading cement manufacturing companies Lafarge Cement managing director Johnathan Shoniwa said wholesale prices of masonry and PCC were $9,79 and $10,79 respectively.
“The recommended retail prices are $11,50 and $12,50 per bag for masonry and PCC respectively. There is excessive profiteering on the market due to shortages,” said Shoniwa.
“We are currently on a breakdown and expect to run one cement mill this week and the second one by next week if all goes well.”
Giving an update on the market early this month, the cement manufacturer said national domestic cement demand for eight months was 51% up from last year.
Lafarge said in the past, the market was predominantly retail, but there was a marked improvement in the construction sector, which now contributed 18% of sales compared to 6% last year.
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The company also said it was on course to achieve its revenue forecast of $50 million by year-end compared to $41,7 million generated in 2010. An operating profit for the year is forecast at $5 million.
