Ghana imports over 1 million tonnes of Cement annually

The desire to import everything, which has a negative impact on the economy, especially the strength of the local currency and the promotion of buy made-in- Ghana products, is not ending anytime soon as the country imports more than 1 million tonnes of cement per annum.

It is strange that the country has allowed the importation of cement because local cement manufacturers have installed capacities of about 7.4 million tonnes per annum, far above the current consumption of only 5 million tonnes per annum.

This leaves a surplus capacity of more than two million tonnes.

Clearly, Ghana does not need imported cement because the local cement manufacturers have the adequate installed capacities to sustain employment, honour financial contributions, add value, use local raw materials, maintain required quality standards and meet the growing cement demands.

The local cement manufacturers are Ghacem Limited, Diamond Cement Ghana, Savanna Diamond Cement and Western Diamond Cement.

Trade Industry Minister Dr Ekwow Spio Garbrah, in a statement issued in Accra, has given all cement importers up to March 31, 2016 to register with the ministry.

“To bring sanity into the sector, bring relief to local manufacturers and facilitate international trade, the Ministry of Trade and Industry proposes, through legislative instrument, to impose a ceiling on the annual importation of cement into Ghana,” he said.

According to the Minister, companies that wish to import bagged cement shall be issued a permit to avoid the chaos that has lately saddled the sector.

Dr Garbrah explained that the limited imports would prevent local manufacturers from taking undue price advantage of consumers.

He added that companies that are legitimately licensed under the Economic Community of West African States (ECOWAS) Trade Liberation Scheme are exempted from the need to apply for permits.

Cement Manufacturers Association of Ghana (CMAG) commended the Trade and Industry Minister, saying the step taken is in the right direction.

Background

Last year, the Cement Manufacturers Association of Ghana (CMAG) accused importers of cement of milking the state by GH?50 million a year through under-declaration of cost and freight values.

According to the association, cement importers make what it calls ridiculous declarations as low as between $25 and $30 per tonne as cost and freight from China.

The bagged cements from China are under-declared and, therefore, a huge loss to the economy and jeopardy to the established local cement industries.

CMAG noted that a total of about 500,000 tonnes bagged cement have been imported into the country, and the association dares to say there is revenue loss of more than GH?50 million using those ridiculous cost and freight values.

The association called for a halt in importation of bagged cement because of its negative consequences on the economy and the local cement manufacturing industries as the local cement industry contributes more than GH?600 million annually in terms of duties and taxes to the state.