Cement manufacturers cry foul

The Cement Manufacturers Association of Ghana (CMAG) has called on government to eliminate any unfair trade regime which favours cement imports.

Dr George Ahmoah-Dawson, CMAG Chairman, claimed the 10 per cent tax subsidy to DANGOTE cement imports from Nigeria, contrary to the stipulated 20 per cent tax, should be addressed to keep local manufacturers afloat.

He said this in an interview with the Ghana News Agency following the recent visit of Dr Ekwow Spio-Garbrah, Minister of Trade and Industry to the Diamond Cement Factory at Aflao, during which he promised to carry the concerns of cement manufacturers to government.

Dr Ahmoah-Dawson said Ghana’s annual cement requirement of approximately 5.5 million tonnes is within the production capacity of 7.6 million tonnes by local companies- 3.2 million tonnes by Diamond Cement and 4.4 million tonnes by GHACEM.

“CMAG is not against our country’s law on free trade and on cement imports, we are only against the unfair practices which tilts the game in favour of DANGOTE and the Chinese imports”, he said.

Dr Ahmoah-Dawson appealed to government to fast-track the Ghana International Trade Commission Bill to address the unfair trade environment.

Mr Tati Rama Rao, General Manager, Diamond Cement, told the GNA at Aflao that the problem has resulted in the company cutting production by 30 per cent by closing the plant three times a week.

He said Ghana may lose revenue due to the 10 per cent tax exempt being enjoyed by DANGOTE since 2010.

Mr Rao said while Ghana was allowing DANGOTE imports under the ECOWAS trade protocol, Nigeria on its part was restricting imports of the product from other countries including ECOWAS states.

He claimed DANGOTE enjoys a 30 per cent subsidy under Nigeria’s Export Expansion Grant Scheme (EEG) for cement exports from that country, while also benefiting from the ECOWAS’ zero per cent tax through Aflao.

Mr Rao said this makes it unfair to the local manufacturers as the importers have the leeway to play “market theatrics” as in the case of DANGOTE, which directly delivers to customers with its own bulk tankers.

Mr Abdul Razak, spokesperson Haulage Tank Drivers and Owners, pointed to the empty parking-lot, which was full of trucks awaiting loading and expressed worry at the turn of events.