CEMENT prices in Zimbabwe have surged by 42 percent over the past two months, driven by a combination of factors including robust demand from an “unprecedented” construction boom and constrained local and import supply.
In Bulawayo, most hardware shops and cement retailers have run out of stock, citing limited supplies amid growing demand for both individual and corporate projects. Prices have climbed to around US$17 from US$12 per 50 kg bag, according to a survey by this publication.
The sharp increase — equating to a US$5 rise per bag — has been attributed to soaring demand, the exhaustion of import quotas by some traders, and production challenges among local manufacturers, industry players have said.
Minister Nqobizitha Mangaliso Ndlovu; “We haven’t had cement in stock for more than a week now, even the big hardware shops in town. We’re not sure what’s happening at PPC, but they indicated that fresh supplies might arrive starting this Tuesday,” said a trader in Bulawayo.
In Harare, a cement dealer remarked: “Demand is very high and remains strong even as prices keep rising.”
Historically, construction activity peaks between April and November, just ahead of the rainy season. However, this year’s demand — fuelled by both residential and commercial projects — has been described as incomparable to previous cycles.
“This happens almost every year, but this time it has been unprecedented,” said Mr Forum Gwatidzo, a hardware operator in Harare.
Ms Grace Murombedzi, who is building a house in Manresa, eastern Harare, expressed frustration over the surge in cement prices. She began her project budgeting for cement at US$12 per bag.
The increases have rendered her original budget “unsustainable” and “shredded” her projections. “I started this project two months ago, calculating my material costs based on a cement price of US$12 a bag,” said Ms Murombedzi.
“For a standard eight-room house, we need hundreds of bags by the time we’re done. But this jump to US$17 hasn’t just increased my budget; it has practically shredded it. I had a buffer, but a 42 percent hike on one of the main inputs is unsustainable.”
While Zimbabwe primarily imports cement from neighbouring Zambia, these inflows have dropped sharply as major importers exhausted their allotted quotas, effectively squeezing external supply just as domestic demand accelerated. Locally, the situation remains precarious.
Despite Zimbabwe’s cement industry having an installed production capacity of about 2,6 million tonnes annually, output has been volatile as major producers grapple with operational setbacks, including power shortages and ageing equipment.
Khayah Cement, in particular, has faced financial distress and production stoppages, further reducing local stock.
The market remains tight, putting pressure on large infrastructure projects and individual builders alike.
Relief, however, may be on the horizon as ongoing investments aim to boost capacity. The new Huaxin cement plant in Chegutu, expected to come online in the first quarter of next year, is projected to add 800 000 tonnes per year once fully operational.
Industry and Commerce Minister Nqobizitha Mangaliso Ndlovu recently acknowledged the occasional shortages but said the country is set to achieve self-sufficiency next year when the Chegutu plant becomes operational.
Minister Ndlovu also highlighted planned investments, including a cement manufacturing plant by Nigerian billionaire Aliko Dangote, who was recently in the country on an investment mission.
He believes this will help position Zimbabwe as a major cement producer in Africa.
In addition to large-scale projects, new, relatively smaller cement plants have been developed in the Hwange area.
Although smaller than existing plants, these facilities will significantly ease shortages, particularly in Matabeleland North, where customers are expected to benefit from lower prices due to reduced transportation costs.
The current surge in construction activity is also reflected in the high demand for other essential building materials, including bricks, aggregate stones, sand and timber.
