Cement manufacturers worried about importation of cement
The Cement Manufacturers Association of Ghana (CMAG), has called for a halt in importation of bagged cement because of its negative consequences on the economy and the local cement manufacturing industries.
A statement issued by the association said bagged cement from China are under-declared and therefore a huge loss to the economy and jeopardy to the established local cement industries.
Since April 2015, the association had petitioned the Ministry of Trade, Tariff Advisory board, Commissioner of Customs Division of the Ghana Revenue Authority, and the Parliamentary Select Committees of Finance and Trade/Industry on the alarming influx of imported bagged cement.
The association said Ghana does not need imported cement because the local cement manufacturers have the adequate installed capacities to sustain employment, honour financial contributions, add value, use local raw materials, maintain required quality standards and meet the growing cement demands.
Members of the local cement manufacturers, comprising Ghacem Limited, Diamond Cement Ghana, Savanna Diamond Cement and Western Diamond Cement, together have installed capacities of about 7.4 million tonnes per annum, whereas the current consumption is only five million tonnes per annum, leaving a surplus capacity of more than two million tonnes.
The CMAG said the menace poses a set back and a challenge to the Ministry of Trade and Industry and the Association of Ghana industries’ promotion of Made-in-Ghana products.
It noted that the cost and freight values of imported cement are ridiculously under declared indicating figures as low as between $25 and $30 per tonne are declared as cost and freight from China.
“As seasoned manufacturers of cement with international links, CMAG certainly knows that these figures are incorrect, and attention have been drawn to the Ministry of Trade and Industry, Ghana Revenue Authority and the Tarrif Advisory Board.”
A total of about 500,000 tonnes bagged cement have been imported into the country and CMAG dares to say there is revenue loss of more than GH₵50 million using those ridiculous cost and freight values.
The cement industry contributes more than GH₵600 million annually in duties and taxes to the state.
Source: GNA