Africa-Press – Malawi. The Malawi Government has taken an unprecedented step to end the cement shortage and bring down skyrocketing prices — by flooding the market with massive imports from Zambia.
Minister of Trade and Industry, Vitumbiko Mumba, told journalists this week that the move is designed to break what he called “cartels of Malawian cement companies” and protect consumers from unfair prices.
“Cement will start arriving in the country this week. My expectation is that the market will soon be flooded, and prices will drop accordingly,” Mumba said.
Cement Prices Set to Plunge
Currently selling for up to K50,000 per 50kg bag, cement prices could fall to as low as K17,000 once the imports hit shop floors. Mumba revealed that as of a few days ago, 12,000 bags were already at the Chipata and Mchinji borders, awaiting clearance.
Government has struck deals with two Zambian giants:
Chilanga Cement Company Ltd – 300 tonnes of 32.5N Portland cement per day at $105 per tonne, $9 below market price.
Sinoma Company Ltd – 32.5N at $105 per tonne and 42.5N at $118 per tonne, both discounted.
To make imports even cheaper, the Chakwera administration has removed the 10% surcharge and scrapped the 10.5% Guided Value previously imposed to shield local producers from foreign competition.
Targeting Hoarders of Essential Goods
Sources within government say this is just part of a broader plan to crash prices of key commodities. Fertilizer is expected to be announced at K80,000 per bag in the coming weeks, and maize imports from Tanzania and Zambia are on the way to stabilize grain prices.
“Those hoarding cement, fertilizer, or maize should take care — prices will fall, and you will lose money,” a senior government source warned.
The government has already committed foreign currency to the operation. Officials from Treasury and Agriculture are currently in Zambia and Tanzania negotiating for maize imports, while agro-processing giant NASFAM has begun bringing in maize on behalf of government.
Short-Term Boost from Local Producers
As the imports roll in, local cement producers Cement Products Ltd and Portland Cement Ltd have pledged to increase deliveries to the central and northern regions, where shortages have been most severe.
With cement, fertilizer, and maize soon to be in abundant supply, the government says it expects to “collapse” the inflated prices that have been hurting Malawian households for months.
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