Ghana: CMAG condemn minister's permit for Chinese imports

The Cement Manufacturers Association of Ghana (CMAG) has expressed its disatisfaction at Ekwow Spio-Garbrah, Ghana's Minister of Trade & Industry, for offering a permit to a Chinese company to import 500,000t of cement into Ghana without the approval of the Cement Monitoring Committee.

CMAG comprises GHACEM Ltd, Diamond Cement Ghana Ltd, Savanna Diamond Co Ltd and Western Diamond Cement Ltd. The CMAG parties stated: "We, the cement manufacturers, demand that the Minister revokes this permit not because we are preventing competition but the manner that it was issued violates the procedures as enshrined in the LI.

"Cement manufacturers condemn this illegal, disrespectful act which is injurious to the local cement industry."

Dr George Dawson-Ahmoah, chairman of CMAG, at a press conference in Tema yesterday, said "from 2014 to date, Ghana has been witnessing the importation of cement mainly from China to compete with local manufacturers.

"The continuous up swelling of cement imports will compel local manufacturers to scale down operations and the negative economic consequences are so obvious to mention...It is therefore mind-boggling to see the ascendancy of cement imports from China by SOL and Fujian, and from Korea and Nigeria by Dangote cement, despite persistent petitions that manufacturers have installed capacities to meet local demand."

He said that besides the afore-stated "there was another cement factory coming up by the end of 2016 in the Free Zones enclave at Tema with a total capacity of 1Mta."

Recently, the Ministry of Trade & Industry, in collaboration with Cabinet, Parliament, and the support of the local cement manufacturers, passed the Legislative Instrument (LI) 2240 to regulate exports and imports of Portland cement.