DRC: the price of cement in Kalemie angers the authorities

by time news

Nearly two years after the relaunch of the Kabimba cement plant 60 km north of Kalemie, the plant is closed by decision of the governor of Tanganyika. Julie Ngungwa criticizes the managers of the Grands Lacs cement plant (CGL) for not respecting the price of cement.

From our correspondent in Lubumbashi,

Faustin Buluya is an entrepreneur from Kalemie and manages a few construction sites, but the high cost of cement is a headache: “ A bag of cement was trading at 27,000 CFA francs ($44.37). I hoped that with the local production of cement, the price would drop, explains the entrepreneur. Unfortunately, locally produced cement now sells for 32,000 CFA francs ($52.58). It discouraged me and also discouraged the others “laments the entrepreneur.

CGL cement in Kabimba is twice as expensive as that produced in Likasi, in southern Katanga, ie 12.5 dollars instead of 6 dollars. However, the factors of production are more favorable in this environment, believes Jules Mulya, president of employers in Kalemie.

« On one side we have limestone, and not far from there, we have a very nice coal mine. Both are essential inputs in the manufacture of cement. And we have another advantagebelieves Jules Mulya. Other inputs such as packaging come through the port of Dar Es Salaam. And we are a thousand kilometers closer than the factories located in Haut Katanga “, adds the president of the employers.

“A justified price”, according to the leaders of the CGL

For their part, the managers of the Great Lakes cement plant are defending themselves. The price structure takes into account the investment and the profit margin of 20%. “ It was necessary to build the factory, the infrastructures, a port, to create a thermal power station, to develop the coal mine and to ensure the transportargues Maître Alex Kabinda, counsel for the CGL. There is a significant investment that makes the operator, in its cost calculations, arrive at the price of 12.5 dollars. So the price was not invented, but it is controllable by the Republic “says the lawyer.

The factory is shut down. According to the company, by decision of the provincial authority of Tanganyika. Jean Bosco Kaumba, an economics expert, describes this decision as illegal, because the province does not intervene in the processing of cement. “ It is a useless decision, it will harm the functioning of economic activity, in this case cement, the price of cement will increase and the rate of investment will decrease ».

For his part, Jacques Kabulo, the communication advisor to the governor of Tanganyika province, said that only the cement depot opened in Kalemie was sealed and not the factory. Meanwhile, other sources close to the company claim that the CGL is under heavy tax pressure from the public services, which has an impact on the sale price of the cement.

► Also to listen: DRC: in Katanga, the rise of locally produced cement

You may also like

Leave a Comment