Zimbabwe cement prices jump 42%

Cement prices in Zimbabwe have risen sharply over the past two months, climbing by 42 percent amid surging demand, constrained imports and inconsistent local production. A survey by this publication shows that the price of a 50kg bag has increased from US$12 to about US$17, a significant US$5 jump that has placed both commercial projects and homebuilders under pressure.

Industry players say the spike reflects an "unprecedented" construction boom that has pushed demand to levels far beyond those typically seen between April and November, the period when building activity normally peaks. A cement trader in Harare noted that demand remained strong despite the rising prices, while hardware operator Forum Gwatidzo described this year's buying pressure as incomparable to previous cycles.

For many ordinary Zimbabweans, the increases have been financially crippling. Grace Murombedzi, who is constructing an eight-room house in Manresa, said she budgeted for cement at US$12 a bag and did not anticipate such a steep rise. She said the 42 percent increase had shredded her projections and rendered her initial budget unsustainable, as her project requires hundreds of bags.

Zimbabwe traditionally relies on cement imports from Zambia to supplement domestic supply, but these inflows have declined sharply after several major importers exhausted their import quotas. The drop in imports has coincided with instability in local production. Although the country has an installed annual capacity of 2.6 million tonnes, actual output has been uneven due to persistent operational challenges. Power shortages, aging infrastructure and financial distress at key producers, including Khayah Cement, have all contributed to shortages.

The strained supply chain has left the market extremely tight, affecting both large infrastructure developments and individual construction projects. However, relief may be in sight. The new Huaxin Cement plant in Chegutu is expected to start operating in the first quarter of next year, eventually adding about 800 000 tonnes of new capacity annually. Industry and Commerce Minister Mangaliso Ndlovu has acknowledged the periodic shortages but said Zimbabwe is on track to achieve self-sufficiency in cement production once the Chegutu plant is fully operational.

Ndlovu also pointed to upcoming investments, including a cement plant proposed by Nigerian billionaire Aliko Dangote, who recently visited Zimbabwe on a scouting mission. He said the project, along with several smaller new facilities in the Hwange area, would expand the country's production footprint and help stabilise supplies, particularly in Matebeleland North where consumers stand to benefit from reduced transportation costs.

The construction boom has also fuelled heightened demand for other building materials such as bricks, aggregate stones, sand and timber, further illustrating the intense pressure facing Zimbabwe's infrastructure sector. As demand continues to surge, stakeholders anticipate that the market will only stabilise once new production capacity comes online next year.