Government approves importation of fertiliser, cement

Harare (New Ziana) – Cabinet has given the green light to individuals to import fertiliser and cement in a bid to address constraints being experienced in the market, a Cabinet Minister said on Tuesday.

Information, Publicity and Broadcasting Services Minister, Dr Jenfan Muswere said Cabinet noted that there is a fertiliser supply gap in the country while the local industry is facing challenges to meet the demand.

“The nation is advised that the national demand for fertilizers is estimated at 400 000 metric tons (MT) of basal and 380 000 metric tons (MT) of top dressing per annum for both the summer and winter cropping season,” he said during a post Cabinet media briefing.

“The local fertilizer industry is having challenges and the supply gap is being covered largely by imports. The current fertilizer stocks held by the Zimbabwe Fertilizer Manufacturers Association (ZFMA) and those under the Collateral Management Agreement (CMA) have indicated that they have challenges meeting the surging demand ahead of imminent summer season.”

Dr Muswere said the government approved that farmers import fertilizers directly from suppliers outside the country to augment local supplies whilst a long-term solution to the shortages is being worked on.

He said similarly, Cabinet noted reports of the spiraling of cement prices in the country on the back of artificial shortages and approved the importation of the commodity by individuals and companies with free funds.

This followed a report on the cement industry market supply and demand situation presented to Cabinet by the Minister of Industry and Commerce, Dr Sithembiso Nyoni, he said.

Explaining the modalities of the cement importation, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the duties and other levies will not likely impact the landed price considering that even if they are factored, the price of the imported cement will still remain cheaper.

Prices of cement in the country have gone up by nearly 100 percent over the past two months mainly due to subdued local production, expiring import licences leading to fewer imports and growing demand with a 50kg bag now priced at about US$20 from US$9.

This has significantly negatively impacted on the construction sector forcing property developers to pay more for the key input.

New Ziana