Recently, Malawi's Trade Minister Vitumbiko Mumba said the government had decided to import cement from Zambia due to a shortage and rising prices in the country.
Mumba told a press conference in Lilongwe that in order to promote the "Buy Malawi, Build Malawi Strategy", his Ministry had taken steps to support local businessmen. However, he pointed out that some unscrupulous businessmen and manufacturers began to abuse this goodwill. He mentioned that the businessmen had asked for a 10% surcharge on imported cement to support the "Buy Malawi Strategy" and that the Chakwila government had agreed. They also asked for a guideline value of 10.5% for imported cement, which the Chakwila administration also agreed to.
However, despite these measures taken by the government to support local traders, the price of cement has risen sharply in the past few months, from 26,000 kwacha per bag three months ago to about 50,000 kwacha at present. In response, the Minister announced that the Government had removed the 10% surcharge on imported cement, which was originally established to protect locally produced cement from international competition.
Mumba also said that Zambian cement was beginning to arrive in Malawi and he expected the market to be flooded with cement soon, leading to lower prices.
As a short-term measure, Mumba said Cement Products Ltd and Portland Cement Ltd had committed to increasing supplies to the Midlands, where supply problems are most pronounced, and the North.