Zambia competition body approves new cement plants

Zambia's competition body has approved plans by a Chinese company to set up two cement plants in the country, saying this will enhance competition in the sector, the Zambia Daily Mail reported on Friday.


Recently, out-going Chinese Ambassador to Zambia Li Qiangmin announced that one of the world's renowned Chinese companies will soon establish cement manufacturing plants in eastern and northwestern provinces of Zambia. The company was expected to invest about 500 million U. S. dollars for the establishment of the two cement plants.


The Competition and Consumer Protection Commission (CCPC) said the establishment of the two plants was welcome, adding it will not only enhance competition but boost the local economy.


Brian Lingela, the CCPC consumer and public relations director, said the cement market currently remained much unsaturated with lots of room for new players to take advantage of the massive untapped potential.


"The intended investment in the two companies will not only likely spur domestic competitiveness and afford consumers the best price from the market, but also enhance consumer choice." he was quoted as saying by the paper.


According to him, the CCPC had always advocated for the entry of more players in the cement sector and encourages more investors to establish regional or micro cement plants to take advantage of niche markets with the construction industry in Zambia being on the upward swing.


Currently, there were three players in Zambia's cement sector dominated by Lafarge Cement Plc which commands a larger market share, while the remaining market share was shared by Zambezi Portland Cement and Scirocco Investments Limited.
(Source:http://news.xinhuanet.com)