Chairman of the Parliament Select Committee on Trade and Industry, Nana Amaniampong Marfo, has pledged its commitment in ensuring the promotion and fair trade practices within the cement Industry.
According to the MP for Afigya-Kwabre, this has become imperative taking into consideration local cement producers and the industry as well which require the support to fuel sustainable development.
Addressing the press during an engagement with member of the Chamber of Cement Manufacturers on challenges facing the local cement industry for a possible resolution, Nana Marfo highlighted the urgency of the meeting with the members of the Chamber.
“Normally when you’re making an LI in Parliament and you do not solicit for views of people who are in the industry and you make it at the end of the day it will not serve its purpose. As we have been made aware, the local Cement Industry is facing a lot of challenges from manufacturing, importation, and its final usage.
“In fact, there are some of the cement products you do not know where it is coming from and we should know that all these affect the built environment. We will ensure that the Ghana Standards Authority comes in as well so we can together find a proper way of promoting the sector”.
Present also was the Chairman of COCMAG, Frederic Albrecht who reckoned the meeting a success.
“We have been able to furnish the house with our challenges because as local manufacturers, what we are concerned is the value we give to the market/Ghanaians in terms of the construction industry and the framework we put in place for the future of the industry”.
According to him, the Chamber was established with the primary aim of acting as the representative for the local cement industry via building a strong, united, and economically viable and sustainable cement industry in Ghana.
He further informed the House of the numerous challenges facing the industry which includes the long-standing fumigation levy of 0.50 USD per ton, the New Jetty in Tema, $10-$15 per ton increase in tariff if construction is pursued and implemented as well as the continuous influx of imported cement products coupled with permits given to companies to open up more new cement factories.
Commenting on the sprouting of other cement factories, Mr. Albrecht further questioned the relevance of their intrusion into the market space.
“Currently we are going below 60 % utilization. We’re now a country that produces 12 million tonnes of cement with a consumption capacity of around 6.4 million tonnes bringing an excess capacity of 5.7 m/tons meaning we have the adequate installed capacity.
“We have also made it clear that we’re capable of embarking on expansions when the market demands, so then one will ask: why do we keep allowing more new entrants?
“We’re happy to meet the house and we expect to work hand in hand with them going forward because like we keep saying not every competitor is playing with the same rules so we need a regulation to establish a fair trade environment where we can all operate fairly”.
