Ghana's cement producers are under pressure from cheap Chinese imports of bagged cement. The domestic producers have been supported in their struggle by a customs review of the cost and freight value of imported cement which have been adjusted from US$25/t to US$60/t.

Dr George Dawson-Ahmoah, chairman of the Ghana Cement Manufacturing Association (GCMA) and strategy and corporate affairs director of Ghacem, said the country does not need the influx of bagged cement, expressing optimism that the local cement industry has adequate capacity to meet demand, since various expansions projects have been completed to guarantee the needed capacity in the country. He added that Ghana has a surplus local cement production capacity of over 2Mta.

“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, because it has consequences like workers losing their jobs, lower taxes to the government and folding-up of local cement companies — which would be disastrous for the nation,” said Dr George Dawson-Ahmoah.

He said the association is not expecting any value less than US$80/t to cover cost and freight of imported cement from China to Ghana, lamenting that imported bagged cement coming into the country with under-declared value results in cheaper retail prices and loss of revenue for the country.

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

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