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INAE accuses Mozambican cement sellers of “price manipulation”
2:47 CAT | 09 Feb 2021
FILE PHOTO - For illustration purposes only. [File photo.: Noticias]
The National Inspection of Economic Activities of Mozambique (INAE) today accused domestic cement suppliers of “price manipulation” and taking advantage of the high demand for the product.
INAE Inspector General Rita Freitas told Lusa that some retail outlets in the city and province of Maputo were selling 50 kg bags of cement for more than 700 meticais (€7.70 euros) when the factory price varies between 455 (€5.00) and 465 meticais (€5.11).
Freitas said that some retailers were hoarding cement in their establishments in order to cause the illusion of a shortage, so as to justify the price increase.
“Inspection services have uncovered situations of cement concealment by some sellers [designed] to provoke a rush that results in the price increase,” Freitas claimed.
Freitas said that the freedom to set a price for cement has limits, because the cost of this product is still managed by the government.
“It is incomprehensible that sellers want profit margins of more than 200 meticais (€2.19) per bag, as is happening with some retailers,” she stressed.
Rita Freitas pointed out that the end and the beginning of each year are usually marked by an increase in demand for cement, mainly due to the return of emigrants to the country and a relative increase in purchasing power during the festive season.
The INAE official said that prompt denunciation by consumers and the performance of inspection services were facilitating the control of cement prices and their adjustment.
Some reports suggest that the fact that Mozambican families spend more time at home, due to restrictions on the movement of people and the rotation of workers in companies within the scope of anti-Covid-19 measures, is one cause of the rise in the price of construction material.
With more time at home, families become more sensitive to the need for repair work, or to complete construction works on their homes.
Source: Lusa
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