Ghana's local cement industry is under threat from an import surge

The Chamber of Cement Manufacturers, Ghana (COCMAG), has raised an alarm over a surge of imported bagged cement, mainly from Togo, stating that the practice has dire consequences on Ghana's market.

According to COCMAG, this influx, largely unregulated, jeopardises local cement producers' survival and competitiveness.

What will it take for cement prices to drop?

In a formal communication to the Ministry of Trade, Agribusiness and Industry (MOTAI), the Chief Executive Officer of the Chamber, Dr George Dawson-Ahmoah, revealed that foreign cement brands, especially those originating from Togo, are rapidly flooding the Ghanaian market.

He noted that most foreign cement imports bypass mandatory product certification processes of the Ghana Standards Authority, raising safety concerns about the integrity of buildings and infrastructure across the country.

Beyond safety, he claimed that the situation has been distorting market dynamics and undermining fair competition.

"Our local manufacturers have made substantial investments to expand production capacity, create jobs, and contribute meaningfully to Ghana's economic development. As such, the influx of imported cement without any value addition to the local economy risks eroding these gains, weakening investor confidence, and destabilising the entire industry." Dr Dawson-Ahmoah emphasised.

The Chamber advised that if urgent measures were not taken, Ghana could face widespread job losses, reduced domestic production, and a slowdown in industrial growth, potentially undermining the government's broader industrialisation agenda.

As part of its recommendations, the Chamber urged the Ministry to urgently investigate the matter and adopt corrective measures, including stricter enforcement of import regulations, a review of current trade policies, and the introduction of protective interventions to safeguard the viability of local cement producers.

"The long-term sustainability of Ghana's cement industry and, by extension, the country's economic transformation efforts depend on swift and decisive action," the Chamber stressed.

The Chamber also highlighted the imbalance in ECOWAS trade practices, saying, “While cement from Togo and other countries easily enters Ghana, Ghanaian cement faces significant barriers when attempting to access markets such as Togo, Côte d’Ivoire, and Nigeria due to strict policies even under the ECOWAS trade framework.”

This, the Chamber noted, has effectively turned Ghana into a dumping ground, with no reciprocal benefits for its local industry.

COCMAG has therefore called on the government to implement protective policies for the cement sector, similar to measures adopted by neighbouring countries to ensure fair competition and industrial growth.

“We remain committed to working closely with the Ministry and all relevant stakeholders to address this matter constructively and collaboratively,” the Chamber affirmed.

NAAB/SEA

Watch the latest edition of BizTech below: