ZAMBIA’S CEMENT INDUSTRY IS OVER SUPPLIED AND HEAVILY COMPETITIVE SAYS LAFARGE
Lafarge Zambia Plc has bemoaned the high saturation of the cement industry in the country. Lafarge Zambia Plc CEO Jimmy Khan says the cement industry in Zambia is over supplied and heavily competitive.
Khan said Zambia’s cement consumption stands at around 2.2 million tonnes compared to a production of about 5 million tonnes.
He told President Lungu at State House in Lusaka on 1 October when he paid him a courtesy call, that his company recently hiked cement price by 25% to stay in business.
Khan said his firm made losses of about K43 million due to many players coming into the sector and that management saw it fit to increase prices in order to stay afloat and operate.
He praised government for the infrastructure development and said his company has moved much of its cargo from road to railway as it pushes to regain a fair share of the market which stands at about 33%.
Khan said Lafarge will continue to use the Mpulungu Port in Northern Province to export cement to the east African market.
He proposed that government consider building concrete roads as an alternative to the costly bituminous ones.
President Lungu said government remains committed to supporting the private sector as the engine for economic growth and development.
The President said government’s decision to retain Value Added Tax (VAT) as a system for collecting tax as opposed to the proposed Sales Tax demonstrates that government is willing to listen to the business sector to ensure that the economy meets stakeholder expectations.
The president said government is negotiating for a financing facility with the World Bank to expand and improve port facilities at Mpulungu in order to boost cargo business and exports to East Africa.
Special Assistant to the President for Press and public relations Isaac Chipampe told journalists that President Lungu encourages private companies to adopt environment friendly business activities and operations and to invest in recycling operations.
He said the Head of State says government will continue to encourage the private sector to use railway as the alternative to road transport for transporting cargo in order to save roads from damage.
He said recycling ventures can help create employment for youths in the country.https://www.lusakatimes.com/2019/10/02/the-cement-industry-in-zambia-is-over-supplied-and-heavily-competitive-lafarge-tells-president-lungu/
