L-R,Ndola Plant Manager Mr Samba Katari, Lafarge Zambia CEO, Mr Emmanuel Rigaux Copperbelt Provincial Minister, Hon, Mwenya Musenge and LafargeHolcim Area Manager, East Africa and Indian Ocean, Mr. Dominique Drouet
L-R,Ndola Plant Manager Mr Samba Katari, Lafarge Zambia CEO, Mr Emmanuel Rigaux Copperbelt Provincial Minister, Hon, Mwenya Musenge and LafargeHolcim Area Manager, East Africa and Indian Ocean, Mr. Dominique Drouet
ZAMBIA’S construction market is likely to record more growth in the second half of this year as investor confidence has been restored after the August 11 elections, Lafarge has predicted.

In the build-up to elections, most investors held on to their investments waiting to see the outcome of the process, thereby negatively affected the construction sector.

Lafarge Zambia chief executive officer Emmanuel Rigaux said the construction sector’s growth in the first half slowed as a result of investor uncertainty due to the elections.

“The market environment in the second half is expected to continue to be challenging both on pricing and volumes, although the end of the electoral period in Zambia may bring back some growth in the construction markets,” Mr Rigaux said in the company’s financial report for the half-year ended June 30, 2016.

In the period under review, however, the company continued to operate in a very difficult environment characterised by tight liquidity, market contraction and competitive pressures in the domestic market.

He said both the Ndola and Lusaka plants strongly reduced their cash costs compared to the first half in 2015 from almost K200 million to about K38.2 million, despite additional power costs.

Mr Rigaux, however, said the firm recorded a reduction in profit before interest and tax from K266 million in 2015 to K49 million in 2016.

He said the company continued to adjust its cost base to remain competitive and fully leveraged the group synergy initiatives in the first half.

Currently, there are three cement producers namely, Lafarge, Dangote and Zambezi Portland.

“Large contracts such as Kenneth Kaunda International Airport and Kafue Gorge Lower among other, continued focus on export as well as the roll out of our new franchise network [Kumanga] should help us mitigate the difficult market conditions in Zambia itself in the coming months,” he said.

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17 COMMENTS

  1. During the Rwandan genocide, Christians slaughtered other Christians by the thousands, all in the name of ethnic superiority.

    Churches Became Death Traps In The Rwandan Genocide.

    Thousands of bodies—old men and women, young men and women, boys and girls, toddlers and infants—filled the entire sanctuary. “People piled on top of one another, four or five bodies, on top of the pews, between the pews”
    Mans inhumanity to man, not new and is still happening…humans ability to shock and repulse is nothing new…pure evil under the banner of religion…

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    • Yes salosi

      Are you talking about the Edgar Lungu who managed to drive inflation from 7% to 21% in 1 year is it the same man who swelled zambias debt to almost 10 billion US, I don’t think you mean the lungu who promised 500, 000 jobs for end 2016 only to have massive job losses.

      Which lungu are you talking about ?

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    • @Spaka like lilo – that blogger you have mentioned above is what we call an educated f**l. I can assure you that the Gods do not protect f**ls. f**ls are protected by more capable f**ls.

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  2. Holloy Molloy

    What does your doom and gloom scenario on the Rwandan Genocide have to do with Lafarge’s statement on projected growth this year? I’m flumoxed

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  3. The Marketing staff at Lafarge should have been fired. it surprises me that they had to wait for the first bag on dangote to reduce the price of Lafarge. whats happening now is there is frustration buying happening. people opt to buy dangote just to punish Lafarge for taking advantage of the customers. The other thing is safety overshadowed the cement production in there costs….am taking from within

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    • This has nothing to do with the Marketing Dept but the owners and the market at the time…this is what is happening in the Zambian Mobile Phone sector were the network providers have formed a cartel and ZICTA are all in it together to rip off consumers with high tariffs whilst providing poor services.

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  4. Zambians should support Dangote by buying his product…if it was not for him cement would have been high and unaffordable..its no wonder some corrupt politicians like Papa Smurf Shamenda tried to throw spanners in the works. This French owned Larfarge were happy to rip us off for years

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    • Ndanje khakis – Do you not realize that your electricity is highly subsidized? For there to be competition first the tariffs have to cost reflective that would mean increase in price to make it profitable for a new wholesaler to produce.

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  5. Jay jay don’t give up even before you try. By the way when Gbm addressed a Upnd rally in Kalulushi, he promised us that when Upnd wins Zesco tarrifs would be reduced by more than 50%. Please enlighten us on what magic Upnd was going to use.

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    • Ndanje khakis; carry on wishful thinking…you simply have no clue how electricity is Generated, Distributed and Retailed in Zambia..here you are now trying to hide your ignorance in silly cadre debates about GBM and the likes who I wouldn’t care less what comes out of his mouth.

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    • @6 Ndanje.. Good question though these are the issues voters needed to ask the peddlers of the 10 POINT PLAN which had HIDDEN THE HOW PART of how to change things. PF has been very clear on the issue of electricity tariffs that they will be increasing them gradually till 2019 when they hope they will reach cost effective levels. That is how investment will be channelled to the sector!

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  6. Probably get all their men to batter their wives and the prices would be down by 50% because they say so…

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  7. Jay Jay, I am a very up to date individual and I am glad you disagree with Gbm on this issue. Oh I forgot that Gbm also promised us more fuel subsidies and free farming inputs
    I know all these are Utopian and can only happen in the most fertile minds. My problem is that even with some of the best brains of the land among its ranks Upnd would allow shallow balloons to promise heaven to us.

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    • Ndanje khakis – why do you keep alluding to that Political party? If one is critical of Lazy Lungu does it mean that one is opposition…

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