Someone was asking, why cement is expensive in Zimbabwe yet, in Zambia it costs $6.70 per 50kg bag.
Let me break down the costs:
~The first cost is transport…A 30 tonne truck carries 600 x 50kg bags of cement. Truckers(MaGonyeti) charge USD$1 500 from Zambia to Harare. Thats about $2.50 per bag.
If we add $2.50 to $6.70 the cost goes to $9.20.
Our government charges import duty of 52 000 ZiG on those 600 bags of cement. We all know that ZiG is in short supply, its found on the black market at a rate of US$1=ZWG31.
52 000 ZiG is equivalent to US$1 677. This adds another $2.80 to the cost of cement.
$9.20 plus $2.80 brings the cost to $12…..You then pay boys $250 for clearance, kana ukapusa unorohwa $300.
That adds 0.40 cents on the cost…..
Cement landing cost is at most $12.50…Retailers in Zimbabwe will then add their mark up, which is normally $1.50 to $2.
Those who have their own transport reduce the $1500 transportation costs, and their sell their cement cheaper.
This December, there has been an acute shortage because government added more restrictions just before Aliko Dangote visited Zimbabwe.
Dangote cement has been of late in high demand…Cement retailers import from Zambia.