Why Zambia Ordered Dangote To Sell Cement For N1, 800 In Zambia - IReporteronline
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Why Zambia Ordered Dangote To Sell Cement For N1, 800 In Zambia

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The Dangote Cement Group sells its product in Southern African country, Zambia, for at most 110 Kwacha, which equals about N1 800 in Nigeria, while the same product sells for not less than N3 500.

 

The Zambia Board of Commissioners of the Competition and Consumer Protection Commission said it ordered Lafarge Zambia Plc, Dangote Cement Zambia Limited and Mpande Limestone Limited to revert to the cement prices, ranging between Kwacha 99 to Kwacha 110 after there was an uproar over its recent increment.

 

The Board also fined Lafarge Zambia Plc and Mpande Limestone Limited 10% of their annual turnovers for the year 2019 and another 10% of their 2020 yearly turnovers for price-fixing and division of markets.

 

The Board, however, said it was lenient with Dangote Cement Zambia Limited for having cooperated with the commission during investigations.

 

According to Zambia News, the decision to fine Lafarge Zambia Plc and Mpande Limestone Limited was made during the 49th Board of Commissioners Meeting for the Adjudication of Cases held in Lusaka on March 30, 2021.

 

This was after an exhaustive investigation by the Commission initiated in January 2020 following the Commission’s observation of a sustained increment of cement prices from an average of K55 to K100 per 50kg bag between July 2019 and January 2020.

 

The continuous price increment of cement by the parties led the Commission to suspect that there were possible collusion and an agreement to fix the cement prices and the Commission carried out investigations for a year.

 

In a statement issued by CCPC Senior Public Relations Officer, Namukolo Kasumpa, the Board has also ordered Lafarge Zambia Plc, Dangote Cement Zambia Limited and Mpande Limestone Limited to revert to the pre-cartel prices ranging between USD 4.50 – USD 5 (K99 – K110) for one year from the date of receipt of the Board decision pursuant to Section 59 (3) (b) of the Act.

 

“Additionally, that Lafarge Zambia Plc, Dangote Cement Zambia Limited, Mpande Limestone Limited submit monthly average ex-works prices and any price adjustments be indexed to the exchange rate and be submitted to the Commission for a review pursuant to Section 58 (1) of the Act,” the Board stated.

 

The Board has further ordered the three cement companies to develop and implement compliance programmes in their respective firms within 90 days of receiving the directive.

 

“Furthermore, the Board has directed Lafarge Zambia PLC, Dangote Cement Zambia Limited and Mpande Limestone to make undertakings within 90 days of receiving the directive that their respective employees should not engage in any anti-competitive behaviour and that the enterprises should not facilitate and participate in any anti-competitive conduct including the exchange of information,” the Board stated.

 

Meanwhile, checks by SaharaReporters in Nigerian construction markets revealed that Dangote Cement sells for N3,500, while Lafarge sells for N3,400 – about double of what Zambians pay for the same commodity.

Source: Sahara Reporters

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JUST IN: Nigeria’s Inflation Rate Drops To 18.12%

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Nigeria’s rate of inflation dropped to 18.12 per cent in April 2021, the National Bureau of Statistics (NBS) said on Monday

It was 18.17 per cent in March, shedding 0.05 per cent to close at 18.12 in April.

The NBS said: “The Consumer Price Index, which measures inflation increased by 18.12 per cent (year-on-year) in April 2021.

“This is 0.05 per cent points lower than the rate recorded in March 2021 (18.17 per cent).”

The 0.05 per cent drop in April 2021 was the first time Nigeria’s inflation rate would fall in about 20 months as the last time it fell was in 2019 when the CPI shed 0.06 per cent, falling from 11.08 per cent in July to 11.02 in August.

In its April 2021 inflation report, the NBS stated increases were recorded in all Classification of Individual Consumption by Purpose divisions that yielded the headline index.

On a month-on-month basis, the headline index increased by 0.97 per cent in April 2021, this was a 0.59 per cent rate lower than the rate recorded in March 2021 (1.56 per cent).

The percentage change in the average composite CPI for the 12 months period ending April 2021 over the average of the CPI for the previous 12 months period was 15.04 per cent, showing 0.48 per cent point from 14.55 per cent recorded in March 2021.

The urban inflation rate increased by 18.68 per cent year-on-year in April 2021 from 18.76 per cent recorded in March 2021, while the rural inflation rate increased by 17.57 per cent in April 2021 from 17.60 per cent in March 2021.

On a month-on-month basis, the urban index rose by 0.99 per cent in April 2021, down by 0.61 the rate recorded in March 2021 (1.60 per cent).

The rural index also rose by 0.95 per cent in April 2021, down by 0.57 the rate that was recorded in March 2021(1.52 per cent).

The corresponding 12-month year-on-year average percentage change for the urban index was 15.63 per cent in April 2021.

This was higher than 15.15 per cent reported in March 2021, while the corresponding rural inflation rate in April 2021 was 14.48 per cent compared to 13.99 per cent recorded in March 2021.

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SMEs Has Key Role In Economy Post-COVID –Institute

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The National Institute of Marketing of Nigeria says Small and Medium Enterprises will play a significant role in the post-COVID-19 world.

In a statement, the institute said conversations on this would be held at its two-day Annual Marketing Conference scheduled to hold later in May.

Speaking ahead of the AMC, the President of NIMN, Tony Agenmonmen, said the conference’s theme was informed by the “very significant roles” that SMEs played in the economic and social lives of the nation, in terms of employment generation, poverty reduction, and contribution to the Gross Domestic Product.

Agenmonmen said the AMC would be an avenue to present the account of stewardship of the institute’s leadership for the year ended December 31, 2020.

He said, “This will be my last AMC as the president and chairman of the council of our great institute.

Therefore, I will also use the occasion to present my stewardship for the over four years that I have had the privilege of leading my colleagues in the council, to lay a solid foundation and an irreversible growth for the institute.”

Meanwhile, the institute said it had inaugurated an eight-man disciplinary panel to look into the activities of quacks in the profession.

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Edo Government To Commence Building Of Int’l Market For Electrical, Electronic Materials

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As part of efforts towards making Edo State a preferred investment destination, the state government has facilitated a memorandum of understanding (MoU) with investors for the building of the Monee International Market in the state.

To facilitate the process, the government had earlier granted a waiver to the investor in the payment of planning fees, besides other government efforts.

The MoU was signed by members of the Board of Trustees (BOT) of Monee International Market, the developer, Alicesons Property Market Limited, and lawyers for both parties at the ESIPO office in Benin City.

The international market located on Agbor Road, Benin City is for the sales of electrical and electronic materials as well as building materials.

On completion, it will create 20,00 direct and indirect jobs for the populace and also be seen as a significant economic impetus for the development of the state.

The investor stated that it will alter the original plan of the market to increase the number of building so as to accommodate up to 2,860 stores from the original 1,290.

Speaking at the MoU signing ceremony, the Managing Director of Edo State Investment Promotion Office (ESIPO), Mr Kelvin Uwaibi assured the investor of government support towards completing the project soon.

According to him, “As a government, you have our support to move to site two weeks from today.

“Let me say that God’s hand is in this project. We are doing this and prosperity will hold us accountable.

”We all want to change Nigeria for the better and this is one thing we are doing to bring that change; working with all sincerity to make good things happen in our state which will legitimately put money into the pockets of our people through trading will help the Nigeria economy,” he added.

Chief Sam Awiaka who spoke on behalf of the BoT of Monee International Market said that the project has lingered for years.

He commended the courage and efforts of ESIPO in facilitating the project, urging stakeholders not to relent until the project completion.

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