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.”
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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.
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.