A top executive of the Cement Importers and Agents Association of The Gambia has been dissecting the statement issued by the Jah Oil company manager Momodou Hydara in a recent press conference, concluding that Hydara’s delivery has starkly contrasted the reason given by The Gambia government for its 180% tariffs on a bag of imported cement.
The Gambia is currently experiencing a grinding cement shortage, which has brought some construction activities across the country to a halt and continues to destroy livelihoods in many parts of the country.
Last year, The Gambia government introduced a hefty D180 levy on a bag of imported cement from Senegal, which used to be taxed at D30.
The government said the trade tariff was introduced to shield Jah Oil, Gacem and Salam cement factories from the influx of imported cement with a view to boosting local production while maintaining prices at affordable levels.
However, after analysing Jah Oil Hydara’s press conference delivery on Wednesday, the leading member of the Cement Importers and Agents Association of The Gambia, who preferred not to be named, contended that Hydara and The Gambia government were not singing from the same song-sheet as to the government’s explanation for its tariff policy.
Hydara told the press conference that the previous D355 cement price was untenable because the dollar was more muscular than the local currency.
“Despite attempts to engage the government on possible solutions, delayed responses forced Jah Oil to secure new orders at adjusted prices,” Hydara told reporters on Wednesday.
However, to our interlocutor, these press conference remarks have exposed The Gambia government’s “deception” that its trade tax is being implemented to boost local production and anchor down prices.
“This is a glaring indication that these factories are not producing cement locally. We import and they import. What is the difference? The slight difference is that they import 400kg sacks while we import 50kg bags. That’s the only thing, but apart from that we are all importers,” he added.
He pointed out that Hydara’s announcement that Jah Oil cement factory was on the brink of importing 52,000 tons of cement should be a wake-up call to the government of The Gambia that Jah Oil cement factory is not up to the task.
Jah Oil factory’s engines grounded to a screeching halt more than a fortnight ago.
“No serious cement factory will have its engine remain silent for more than two weeks. Dangote, Soccocim and Sahel Industries never literally sleep. For them, it’s a round-the-clock production. These local cement factories cannot meet the country’s cement needs. They may try but they will ultimately fail,” he argued.
The Cement Importers and Agents Association executive member pointed out that the long and short of all the noise about the cement issue is to liberalize the market.
“Other industry players should be provided the level playing ground to participate in the cement import than restricting it to few re-bagging companies under the guise of promoting local production and price stability,” he stated, adding:” In fact, talking about price stability, our association can engage the cement companies in Senegal to lower the retail price of cement beyond the existing prices.”
