Demand for cement went up resulting in a backlog in supply following the reopening of the economy according to the Lafarge Cement Zimbabwe Limited Chairman K.C. Katsande.
Zimbabwe is currently in the process of reopening the economy after a lockdown to reduce the spread of COVID-19.
“Demand for cement in the construction sector increased by 34% ahead of Q2 (second quarter) following the reopening of the economy after the COVID-19 induced national lockdown,” Katsande says.
“As business activity progressively continued to gain momentum into Q3 (third quarter), the demand for cement consequently outstripped supply causing considerable supply backlog.”
The Lafarge business in general, which besides cement also include aggregates and dry mortars mix products, experienced a rebound in Q3.
“Record sales volumes were recorded in the month of July, the best for the same month since 2003,” Katsande says.
“This accelerated volumes recovery, closing the quarter at above 7% above the same period prior year.”
“Volumes were driven by a strong recovery in the Individual Home Builder (IHB) market, Concrete Plaster Manufacturing (CPM) and roads segments on the back of strong tobacco and cotton market revenue.” Katsande went on.
The dry Mortars business also grew by 64% in volumes against the same period last year according to Katsande.
“This was mainly influenced by the increase in demand for SupaGrow, the agricultural lime range, during the winter land preparation season,” he says.