Mauritius | Manufacturing & Services

February 02, 2012

Bhooshan Ramloll, President of the Baceca "Liberalizing the Cement Market Was a Big Mistake"

Bhooshan Ramloll, president of the Building & Civil Engineering Contractors Association (Baceca) out of its hinges. It "unacceptable" the rising price of cement while evoking the impact of the increase in the construction sector. There is even talk of dismissal.

> From the first Wednesday in February, the price of cement shows an increase of 15%. What will the impact of this increase on the construction industry?

Cement is like the diesel sector. As soon as the price increases, all materials are cement are soaring. You should know that the cement is between 20 and 25% of the construction of a building or a house. With the increase of cement, the total cost of construction will see an increase of about 3%. Operators will be permanently affected because their costs will increase. This increase comes at the wrong time because, firstly, there is currently a contraction in the industry and the other we are in economic crisis. 

> The consumer will also pay the note ... 

Of course! A house will cost 3% more expensive now. However, suppliers of cement had promised to bring to market different types of cement at different prices to relieve the entrepreneurs and consumers. The cement for plastering should be cheaper than cement for concrete. However, both types of cement sold in the same price. Suppliers do not play the game The government made ??a big mistake by liberalizing the cement market. We have only two major suppliers and they have rain or shine. We must return to the old system, unless there are other suppliers entering the market quickly.

> You wonder about the reasons for the rise in cement prices ...

Indeed! We do not understand the reasons for this increase. Major currencies, including the euro, the dollar and sterling, have fallen significantly in recent times. Furthermore, global demand for cement has not really increased. Moreover, construction is idling on the international stage. This increase is unacceptable!

> Do you fear a loss of some projects this year? 

Yes! The increase in cement prices will have a psychological effect. There is a risk that people abandon their construction projects, especially those who planned to build houses. 

> Is there any risk of dismissal? 

This can happen especially in the informal sector. Those who build houses will find themselves in trouble. They will have no choice but to resort to dismissal. 

> How will the construction in the coming months?

We are not pessimistic. There is work for everyone, but it will be at loggerheads. Each will fight to get a place in the sun. 

> Can we expect that private projects take off this year? 

Addition to the construction of two hotels, there will be some projects of apartments. Private projects will be lower in 2012 compared to last year. It is therefore necessary that the government maintain the pace in terms of public infrastructure projects to boil the pot. The mood of "wait and see" will also persist because of the crisis.

 

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