Cement imports banned again as local production ri...

Cement imports banned again as local production rises

Oscar J Jeke

The government has said it is discontinuing the issuance of cement import licences to boost local cement supply, amid a return to optimal production levels by the four major local producers in the country, with a depressed local demand resulting in stockpiling.

The government had enacted new rules where companies and individuals could import up to 100 50kg bags of cement without an import licence owing to a growing shortage of the product on the local market, with local companies not meeting the desired demand from the public in the past year.

Addressing a post-Cabinet briefing on Tuesday, Information, Publicity and Broadcasting Services Minister, Dr. Jenfan Muswere said the issuance of cement importation licences is discontinuing, owing to reverberated local production by the four major cement producers.

This has seen a maximum of 241 000 metric tonnes being produced every month against the local market demand of 160 500 tonnes per month.

“Cabinet advises the nation that there is now adequate cement on the market. Accordingly, the issuance of cement import licences is being discontinued in order to boost demand for local cement.”

Against this backdrop, the Minister said that local companies are faced with problems of stockpiling and reduced production due to decreasing local market demand.

“The four major cement manufacturers in the country have installed capacity of 2.6 million metric tonnes per annum against a national demand of 1.6 million metric tonnes. Cabinet notes that the local industry is now producing above optimal levels. The four companies are producing a combined 160 500 metric tonnes per month against the installed capacity of 241 000 metric tonnes per month. Depressed local demand has resulted in the company’s stockpiling cement and reducing production,” Minister Muswere added.