Government hasn’t banned cement importation - Trade Ministry

The Ministry of Trade and Industry has clarified claims that the government, has placed ban on the importation of cement into the country.

The ministry, through its Deputy Minister, Carlos Kingsley Ahenkorah, insists that the report is misleading and does not reflect the true position of the Trade and Industry Ministry on the matter.

According to Mr Ahenkorah, what the ministry has done, was to manage and find a way in order to discourage people from the importation of the product.

“We have managed to find a way to discourage the importation of cement…and I’m choosing my words carefully. Haphazardly, we’ve discouraged…We’ve not banned; anybody that wants to import can decide to go and import if he goes through the right channel and the right processes,” he clarified in an interview with Joy News.

Mr Ahenkorah, at an event last Friday, announced that the Ministry of Trade and Industry is taking steps to halt the importation of the product, as part of measures to protect and encourage the growth of existing cement processing companies.

His statement, has, however, been misconstrued and reported to mean that the Trade and Industry Ministry and for that matter government, has placed a ban on the importation of cement.

But the Minister, who took time to come clear on the issue once and for all said, the Ministry’s decision to discourage the importation of the product is to ensure, more consumption of locally produced ones and those that are already in the market.

“…We discouraged people from importing because we are trying it even difficult for the locally manufactured ones to be absorbed in the system”, he explained, adding that, “If we allow the importation of cement, you can be rest assured that 6.5million consumption of locally manufactured cement wouldn’t have happened”.

“So basically, what we are saying is if anybody decides to come into the country to invest in cement production, if they come to us for advice, what we’ll let them understand is, to explain them understand what cement scenario is, how we are even not able to absorb what the eight companies are currently producing”.

The deputy minister, speaking at the Customer Awards Dinner of a cement manufacturer, CIMAF, located at the Free Zones Enclave in Tema, in Accra, observed that the temporary ban and the restrictions on imports were meant to support the current eight cement manufacturers that operated in unfair competition.

“The ministry has taken note of the challenges in the industry and has decided not to increase the number of cement factories in the near future. Secondly, we have tried very hard to prevent the importation of the products into the country,” the Deputy Minister, who doubled as the Member of Parliament (MP) for Tema West, indicated.

With eight processors, he explained that the country’s installed capacity for cement production was about 13 million tonnes annually, but only half was utilised, leaving an excess capacity of 6.5 million tonnes. For this reason, he said deliberate steps were also needed to ensure that the excess cement was exported to neighbouring countries.

The eight are Ghacem Limited, CIMAF Ghana Limited, Diamond Cement Group, Dangote Cement Ghana Limited, CBI Ghana Limited, Wan Heng Ghana Limited, Xin Ann Safe Cement Limited and Pozzolana Ghana Limited (PGL).

While, urging the manufacturers to maintain their prices at a reasonable level in the market, Mr Ahenkorah, said the government would not hesitate to open the floodgates for imports to compete with the local manufacturers, should they form a cartel to increase their prices without consultations.

“The actions we have adopted will be in place for a very long time, except when the manufacturers decide to turn themselves into cartels to sabotage it”.

“This is because cement forms an integral part of the economic growth and development in Ghana and so if you decide to increase prices of your product, it can change the political fortunes of a political party.

“So, we will not allow manufacturers to run away with the prices of the product.

When you do that without consulting us, we will also open the floodgates for import to come in to compete with you,” he said.

However, Mr Ahenkorah expressed the optimism that it would not get to the point of reversing the above-mentioned actions because he believed the manufacturers would uphold and respect the arrangement in place.

For his part, the Minister of Works and Housing, Mr Samuel Atta Akyea, said the government would support investors with the needed interventions that would help reduce the country’s current housing deficit.

“With a population size of 30 million, it is sad that about one-third of us do not have decent accommodation and if the situation is not addressed, the country will soon run into chaos,” he said.

Although most of the developers have been demanding a guarantee worth $2 million to build a 5,000 housing unit project, he stated that his office had been able to secure a new deal with a Moroccan firm without the guarantee arrangement.

As a result, Mr Atta Akyea, said the firm, Addoha Group of Morocco, was set to partner the government to construct affordable housing units for Ghanaians.