Zim Cement Prices Keep Rising

Zimbabwe’s cement prices have surged 42% in two months amid strong demand, supply constraints and new import tariffs (image source)

Zimbabwe’s cement market has entered a period of sustained price inflation, with traders and industry sources attributing the surge to strong domestic demand, supply constraints and recent policy changes that have tightened imports. A market survey published in November found prices up by around 42% over two months, lifting the average retail price of a 50kg bag from roughly US$12 to about US$17. The jump is reshaping construction budgets and project timelines across the country.

Key drivers of the increase include an “unprecedented” boom in construction activity, the exhaustion of import quotas among some traders and production challenges at local plants. Builders report that demand has remained robust even as prices climb, sustaining pressure on supply chains and encouraging speculative buying by wholesalers and contractors preparing for the rainy-season peak in activity. The combination of higher local consumption and constrained imports has created a tight market that amplifies price movements whenever any single factor shifts.

Policy changes have also played a significant role. In May 2025, the government introduced a 30% tariff on imported cement under Statutory Instrument 50A of 2025, a measure intended to protect and stimulate domestic manufacturers. Early industry data suggest the tariff has boosted local sales volumes; for example, PPC reported a 22% year-on-year rise in cement sales in the months following the tariff’s introduction. But the policy has also reduced the flow of cheaper imports that previously helped stabilise retail prices. That trade-off lies at the centre of the current squeeze: tariffs support local producers but can raise end-user costs when domestic output cannot immediately meet demand.

Official statistics tracking building material costs show an upward trend across the broader basket of construction inputs, reinforcing the picture of rising project expenses. Zimbabwe’s Building Materials Price Index (BMPI), which monitors quarterly movements in key inputs such as cement, steel and roofing materials, reflects sustained inflationary pressure that will feed into housing and infrastructure budgets. The impact is already visible on construction sites and among small-scale builders. Contractors report higher tender prices, delayed starts for marginal projects and tighter cashflow as clients hesitate over revised estimates. For public works, government faces the options of absorbing higher costs, re-tendering projects or scaling back scope — each carrying economic and political consequences. For households, rising cement prices mean more expensive home improvements and slower delivery of affordable housing initiatives.

Industry responses are mixed. Some manufacturers are expanding capacity or seeking efficiency gains to meet rising demand, while others call for calibrated policy adjustments such as temporary import allowances or targeted subsidies for critical projects to ease short-term shortages without undermining long-term domestic industry development. Traders urge clearer import quota management and improved logistics to reduce bottlenecks that push up prices. If the current trajectory continues, analysts warn that construction inflation will persist, affecting private and public investment plans alike. Policymakers must balance support for local production with measures to ensure affordability and supply reliability — or risk stalling the very construction boom that has driven recent economic activity.