CAMA implores on government to provide adequate forex for cement manufacturers to import raw materials
Concerned with high prices of cement on the market, which has been triggered by its low production and supply which unscrupulous traders have taken advantage to push up the prices, Consumers Association of Malawi (CAMA) implores on the government to provide adequate foreign currency for cement manufacturers to import raw materials.
On Friday, Minister of Finance & Economic Planning, Sosten Gwengwe told Parliament that shortage of forex is the major factor contributing to the scarcity of cement in the country, when he responded to a question from Rumphi West MP, Yona Adadawiza Mkandawire — who suggested that the government should encourage cement imports to deal with the situation.
Thus CAMA’s Executive Director, John Kapito maintains that unscrupulous traders have taken advantage of the situation to push up cement prices, which is now beyond the reach of many consumers.
He appealed to traders not to take advantage of the scarcities of the product but sell at recommended prices as the high prices are unsustainable and unaffordable to consumers.
In the same vein, CAMA is also appealing to the Ministry of Trade & Industry “to allow importation of cement to traders that have capacity to enable consumer’s access cement and at affordable prices”.
CAMA further asks the Ministry “to deploy its trade officers to monitor and inspect the distribution and pricing of cement on the market”.
The cement scarcity is also affecting the construction of Malawi’s flagship gravity-fed canal irrigation scheme, the Shire Valley Transformation Programme — the massive project which will be the largest in the Southern Africa once completed.
Project Coordinator, Dr. Stanley Khaila disclosed this a fortnight ago when the Office of the President & Cabinet, through its Presidential Delivery Unit (PDU), went on a site visit to Chikwawa to appreciate its progress, which applauded the coordinating unit for doing a commendable job so far in its phases of construction.
The PDU assured that they have taken note of the cement challenge after Khaila appraised them that the project’s two contractors, Condril and Synohydro were looking for neighbouring countries to supply the cement but forex was a huge challenge.
On his part, Minister Gwengwe told the august House that forex shortage has affected both local cement and general product producers, which shall be rectified very soon.
Gwengwe, who stood for Minister of Trade & Industry, Simplex Chithyola Banda said the Reserve Bank of Malawi has been engaged to support local manufacturers — not only to deal with cement but also other equally local important products that needs forex for their import base.
He took cognizance that it is the local producers who are generating forex, thus they need to be supported to make sure stable supply markets and prices.
He also told the legislators that the unscrupulous traders are selling as higher as K20,000 per 50kg bag and added that the Ministry had an engagement the meeting with concerned stakeholders where it was resolved that a bag of cement should not exceed K16,000.
Just as CAMA has expressed its concern, Gwengwe also said the queries are being made considering that poor Malawians earn less than K50,000 per month and can’t afford to buy a bag of cement at such high prices.
MP Mkandawire suggested that duty-free week should be utilized during this crisis as manufacturers in Malawi are failing to bring down cement prices, saying: “There is need to encourage cross-border cement importation where government can also be collecting revenues.”
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