Local cement manufacturers ask for protection

The Ghana Cement Manufacturers Association (GCMA) has commended Ghana Link and the Customs Division of the Ghana Revenue Authority (GRA) for taking a giant step to review the cost and freight value of imported bagged cement into the country.

The valuation of Freight on Board (FOB) on importation of bagged cement into the country has recently been adjusted from $25 per metric tonne to $60 per tonne.

In an interview  on the recent development, the Chairman of the GCMA, Dr George Dawson Ahmoah, commended the government for the adjustment, but urged the latter to sustain it in order to maximise revenue, as well as protect the local cement industry.

Dr Dawson Amoah, who is also the Strategy and Corporate Affairs Director of Ghana Cement (GHACEM), said the association was not expecting any value less than $80 per tonne to cover the cost and freight of imported cement from China to Ghana,   lamenting that when bagged cement is imported into the country with under-declared values, it results in cheaper retail prices and loss of revenue to the country.

Capacities

Dr Dawson Ahmoah said the country did not need the influx of bagged cements expressing optimism that the local cement industry had adequate capacities since various expansion projects had been completed to guarantee the needed capacities in the country. He mentioned that currently there was a surplus of local cement production capacity of over two million tonnes.

“We are appealing to international cement manufacturing companies who know the international cement market trade to abide by fair trade practices to safeguard the industry, as it has the consequences of workers losing their jobs, lower taxes to the government and the folding up of local cement companies, which will be disastrous for the nation.

Dr Dawson Ahmoah observed that since the GCMA petitioned the government through the Ministry of Trade and Industry on the under-declared value of the FOB, the association had been monitoring the movement of imported bagged cement and would continue to insist on fair trade practices.

“The retail prices of competitors are below ours and looking at the cost of bagged cement oversees, together with freight, the importers are doing so much damage to the local manufacturers,” he indicated.

He said GCMA was not against competition but against unfair trade practices culminating in unfair competition.

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