Chilanga Cement Plc has voiced growing concerns over the rising cost of doing business, with the company highlighting challenges brought about by economic pressures and escalating production costs.
According to the company’s Corporate Affairs and Communications Manager, Gift Danga, the cement manufacturer is grappling with significant financial strain due to increased fuel prices and extended periods of load shedding, which have dramatically impacted its operations.
Danga stated that the company is now spending four times more on electricity due to the prolonged hours of load shedding, which has disrupted production and increased reliance on alternative power sources. These power outages, coupled with the rising costs of fuel, have significantly contributed to higher production expenses, ultimately leading to an increase in the price of cement in the market. This development has had a cascading effect on the construction industry, where cement is a critical component for ongoing projects across Zambia.
Zambia, like many other countries, has been facing a series of economic challenges over the past year, which have adversely affected various sectors, including manufacturing. One of the most prominent issues has been the persistent load shedding, driven by power generation constraints.
While Zambia’s electricity generation relies heavily on hydroelectric power, low water levels in reservoirs have worsened the energy deficit, forcing industries like Chilanga Cement to seek alternative, more expensive energy sources such as diesel-powered generators.
Danga revealed that the rising costs associated with generating power independently have eaten into the company’s profits and raised concerns about the long-term viability of such measures. He explained, “Chilanga Cement is now spending more than four times what it used to on electricity, with the prolonged load shedding hours being the main culprit behind these increased costs.” He added that despite efforts to mitigate the impact, the company has had to pass on some of these costs to consumers, which has contributed to the rise in cement prices across the country.
Source: Lusakatimes
