2 Zambian firms clinch Malawi cement deal
By Jonathan Mzumazi in Blantyre, Malawi
TWO Zambian cement companies have signed a landmark deal with Malawi to supply cement at reduced prices.
The agreement follows successful talks between Zambian cement producers and the Malawian government. Minister of Trade and Industry Vitumbiko Mumba said.
Under the terms of the agreement, two major Zambian cement producers will supply cement to Malawi at discounted rates.
One of the two companies, which is based in Lusaka, will provide 300 tonnes of 32.5N cement daily at US$105 per tonne, US$9 below the prevailing market price.
Another-Lusaka based firm will supply cement at US$105 per tonne for 32.5N and US$118 per tonne for 42.5N, representing a US$7 reduction per tonne.
Mumba said the importation of Zambian cement was expected to alleviate the shortage of the commodity in Malawi, particularly in the central region where supply challenges have been most acute.
He said now local producers have committed to increasing deliveries to the central region.
The Malawi government has taken steps to facilitate the importation of Zambian cement as part of economic cooperation among African countries.
The 10 per cent surcharge on imported cement and the 10.5 per cent guided value previously imposed on cement imports have been scrapped.
Mumba said the move aimed to reduce the cost of imported cement and improve its competitiveness on the market.
He warned local cement companies against engaging in anti-competitive practices such as hoarding and price manipulation.
“We are coming in hot, hot, hot!” he warned.
Mumba said the Malawian government remained committed to protecting consumers.
