Dr Yamson recommended the stringent implementation of regulations governing the cement business; he said the loopholes in the system were making it possible for fraudulent persons and institutions to negatively impact the fortunes of genuine manufacturers.

He expressed the hope that a sanitised cement sector, where fraudulent importers were denied the opportunity to operate, would help rid the market of substandard products while boosting the businesses of domestic manufacturers.

It will also save the state revenue leakages resulting from the activities of unapproved persons and institutions, he said at the 50th anniversary launch of GHACEM in Accra.

“If government wants to get the best out of the cement business, then it should make sure that people play by the rules.”

“There should be sanity such that the right things are done, people pay their taxes, quality is maintained and no one is shortchanged,” Dr Yamson, who also chairs the Board of Directors of the Standard Chartered Bank Ghana Limited, stressed at the event.

Ridiculous prices

His comments come on the back of increased importation of cement in the midst of excess capacity by domestic producers.

Although the country consumes about five million tonnes of cement every year, the four domestic producers, led by GHACEM, have installed capacities in excess of 7.4 million tonnes.

However, high production costs mean that prices of the locally produced cement are higher than imported ones. This has, over the years, fertilised a cement import market that is now threatening the domestic companies.

Currently, some one million tonnes of bagged cement is imported annually.

GHACEM’s Commercial Director, Nana Philip Archer, said some of the imports came at “ridiculously very low prices”.

“The local industry has the capacity to meet the demand and so any imported finished product that is not adding value in terms of production becomes an issue and that is where there is need to enforce the regulations in place,” he said.

He referred to the Ghana International Trade Commission and the Export and Import (Restrictions on Importation of Portland Cement) Regulations, LI 2240, as two good initiatives that, when used properly, could help solve the problem.

Given that domestic producers contribute to national revenue and job creation, Nana Archer said the challenges confronting them should not be narrowed down to only price, which, in itself, is a cause of factors beyond them.

Assurance

A Deputy Minister of Trade and Industry, Mr Robert Ahomka-Lindsey, assured the company of a stable macroeconomic environment that could support its growth aspirations.

Mr Ahomka-Lindsey said his outfit, working under a pro-private sector government, would support companies to grow, create jobs and sustain the economy.