Increased price of cement to adversely affect the construction sector

Dear Editor,

THE price of cement in Zambia has been increased. The skyrocketing price of cement in the country has been exacerbated by depreciation of the Kwacha against the major convertible currencies such as the United States dollar for instance.

Cement is trading between K130 and K150 following the increase in the price of the commodity and the price is dependent on the brand being sold.

The price of cement is projected to increase as long as the Kwacha remains volatile. If truth be told, cement has become too expensive to buy considering the fact that our country is grappling with high inflation because of the poor economy.

However, the implication of the high price of cement is that it will become too expensive to build. On the hand, the construction sector will be adversely affected in that the contractors will spend more money to buy the commodity in view of the increased price.

Some construction firms got tenders at the time the commodity was trading at lower price than the market price. This implies that the contractors will have no option but to buy the commodity at the prevailing price which is quite exorbitant.

It is a fact that the prices of goods and services are determined by the forces of demand and supply quite but Government should intervene so as to stabilise the price of the commodity. Ultimately, individuals and the construction firms will benefit. This is the way to go.

In another vein, Government will be constrained financially as a dire consequence of the increased price of the commodity. The government through various ministries and the quasi institutions gives the construction tenders to the private firms.

The tenders include construction of schools, hospitals, bridges and roads, among others. When the tenders are awarded to the contractors, they will be expensive owing to the high price of the commodity.

In my conclusion, let me hasten to mention here that the just hiked price of cement will adversely affect the construction sector. People intending to build houses and other infrastructures are not spared either from the negative impact that will be brought about by the increase in the price of the commodity. Over and above everything else, the government should intervene to check the escalating price of cement.

ELEMIYA PHIRI,

Lusaka.