Africa-Press – Malawi. Minister of Trade Vitumbiko Mumba has said the government has resorted to importing cement from Zambia following a scarcity of cement in the country and a rise in prices.
Speaking at a press conference Wednesday night in Lilongwe, Mumba said as part of efforts to promote the ‘Buy Malawi, Build Malawi Strategy’, his ministry had implemented measures to support local traders.
He insisted that, however, that some unscrupulous traders and manufacturers have started to abuse this goodwill.
“They asked for a 10 percent surcharge on imported cement to promote the ‘Buy Malawi Strategy’. The Chakwera government obliged. They also requested a 10.5 percent guiding value on imported cement for the same reason, and again, the Chakwera government obliged,” Mumba said.
He added that despite the efforts to support local traders, cement prices have skyrocketed in recent months, rising from K26,000 three months ago to around K50,000 currently.
As a response, the minister announced that the government has removed the 10 percent surcharge on imported cement, which was initially imposed to protect locally produced cement from international competition.
He said this change would be gazetted within the week, as all necessary procedures are being followed.
Mumba added that cement from Zambia would start arriving in the country this week and that he expects the market will soon be flooded with cement, leading to a reduction in prices.
“As of yesterday, we already had about 12,000 bags of cement at Chipata and Mchinji borders. These consignments are awaiting the gazetting of the surcharge removal before they can be cleared,” he said.
As a short-term measure, Mumba said Cement Products Ltd and Portland Cement Ltd have committed to increasing deliveries to the Central Region this week, as supply challenges have been most prevalent in the central and northern regions.
He also issued a stern warning to traders who continue to hoard sugar, saying the government will resort to importing sugar from Brazil if the hoarding persists.
“I would like to tell Malawians that if the bids of habitual hoarders of sugar are successful and they engage in their usual practices, the Chakwera-led government will have no choice but to flood the market with sugar from Brazil, India or elsewhere,” Mumba said.
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