Some good news came out of Cimerwa – the country’s sole manufacturer of cement – this week. Its new plant was inaugurated and will henceforth increase production six times the previous annual capacity of 100,000 tonnes. 

With the country’s annual demand of 450,000 tonnes, Cimerwa is sure to meet it and spare some for export, particularly targeting Burundi and DR Congo markets.

To accompany the opening of the new plant, it announced a slice in prices, however short-lived and selective; the grace period will last just one month and apply only to those purchasing a minimum of 700 bags.

It is good news that the cement manufacturer is spreading its wings beyond our borders, but it still faces one major hurdle; pricing. Even with the new reduction, its products are still costlier than imported cement from the region. The company has done a good job increasing production, but in order to remain competitive more strategies will have to be called into play.

One of them is working with stakeholders on how to bring down transport costs which translate into higher expenses that help push up the price.

The other is already on the drawing board; partnering with financial institutions to extend credit to real estate developers.

With these and other measures, the local cement-maker would easily thrive on the booming construction industry, thus becoming more competitive.