Despite the slight reduction in the price of cement, which went from 5 thousand and 300 kwanzas to 4 thousand and 400 kwanzas, other civil construction materials remain at high prices, which leads many citizens to “shelve” construction projects and contractors to withdraw from the activity
The price of construction materials has led many consumers to postpone projects, give up on the dream of owning their own home, opt for renovations or even the construction of commercial establishments. This is what subcontractor Domingos Fernando said, who has been in the area for over 12 years.
Domingos Fernando said that the number of civil construction works has reduced considerably in the last two years taking into account the worsening cost of sight, as well as the high price of materials, the majority of which equipment is imported, and the high of the dollar. “When customers request our services, following presenting the quote, many give up, justifying the price of materials and the high cost of living, promising to call later”, he explained.
In the last two years, according to the civil construction student, the main requests for works are finishing of residences, while in central cities it is infiltrations that afflict residents. “We have received many requests to check infiltration problems in central areas, reducing the construction of new homes and large-scale works”, he said.
Reduction of customers
In a round carried out in the Bita Tanque and Kifica markets, it was found that the prices of the materials most used in works, such as cement and steel iron, registered slight reductions. The price of cement reduced from 5 thousand 300 kwanzas to 4 thousand 400 kwanzas, while the cost of 10 12 mm rods went from 57 to 56 thousand kwanzas. “The more you buy, the bigger the discount”, said Domingos Fernando. Rosária António, from the Bita Tanque market, said that the number of customers has reduced, highlighting that, for the most part, they look for construction materials at the end of the month, because they depend on their salary.
Despite there being a reduction in the price of cement, for example, the trader said that less and less is being purchased, a situation that she associates with the current cost of living. “In recent times, customers can hardly buy more than 10 bags of cement. There have been weeks when we have only been able to sell five bags of cement, and some are waiting for product prices to reduce to continue with the works,” she said.
In turn, Certeza Memória, another trader, said that her clientele has been very scarce lately. The trader, who has been in business since 2008 and sells various types of materials, such as sheets, cement, slats, rods and plywood, highlighted that she lives solely from sales to support her family and aims to reduce prices to continue feeding her family. At the Kifica market, Mrs. Maria said that she barely records any profit in the business, as a large part of the money sold ends up being spent on the taxi.
“I live in the Calemba 2 neighborhood and I have to take several taxis to get to Kifica Market. And there aren’t always customers,” she said. In the same place, we met Mariana Domingos, who faces the same problems with the lack of buyers, highlighting that the solution has been to allow many customers to take the material to pay at the end of the month, which has made sales a little easier. “Practically, we came to the market to not stay at home and because the children need to eat, but sales are going from bad to worse”, she lamented.
“High material prices can contribute to inflation”
Economist Herique Pascoal said that the rise in the prices of construction materials can be worrying and have several significant implications for the country, as well as an adverse impact on the economy as a whole, since the results presented in the US Price Index report Construction Materials (IPMC) indicate that it increased by 2.6% from December 2022 to the same period in 2023, representing an increase of 0.7 percentage points compared to the previous month.
Among the groups of construction materials, “cement and binders” led the price increases, with 27.7%, followed by “steel”, with 19.5%, “crushed stone and marble”, with 17.1% . The groups that contributed most to the IPMC variation in December were “cement and binders”, with 1.6 percentage points, “steel” with 0.6 percentage points, “ready-mixed concrete”, with 0.2 percentage points and “blocks”, with 0.1 percentage points. For the economist, this situation can represent a significant challenge for companies and contractors with delays in construction projects, reduced activity and even bankruptcy of companies in the sector.
“Rising material prices can contribute to general inflation, reducing consumers’ purchasing power and increasing living costs”, he highlighted. In Henrique Pascoal’s opinion, higher prices for construction materials might translate into higher housing prices, making it more difficult for people to buy, build or rent properties, making housing more difficult to afford.
It also argues that rising construction and housing costs can have social consequences, such as growing inequality, displacement of low-income communities from urban areas due to higher rental prices and greater pressure on public services.
“The increase in the price of construction materials might hamper the development of essential infrastructure, such as roads, bridges, schools and hospitals, limiting economic growth and development,” he explained. For him, alarming price spikes can have significant implications on various aspects of the economy and society, requiring a coordinated and strategic response from relevant authorities and stakeholders.
