20/05/2024
Statement from the Cement Importers and Traders Association (Anda Takhawu Sunu Reew)
We are writing to our fellow Gambians to voice serious concerns regarding the Finance and Trade Ministries recent directive to raise the import duties of cement via road networks to D180, a 500% increase, in effect blocking any cement import via road from African countries, while continuing to subsidize the importation of powder cement via vessel from distant European markets, contradicting The Gambiaβs commitment to foster intra-Africa trade. This poorly planned policy and will lead to:
- Increased prices and reduced supply
- Broader industry and economic impact
- Trade conflict with Senegal
We employ directly over 3,000 young Gambian men and women while the so-called cement producers import workers from foreign countries to run their operations. The three of them, Jah Oil, Gacem, and Salam, employ less than 800 people directly.
The Gambian Government's commitment to local employment, small businesses, and a fair market is under fire. Trade Minister Baboucarr Joof's recent policy prioritizing Jah Oil as the sole cement importer contradicts these goals, sacrificing the economic well-being of Gambians for a single individual. This move not only benefits Hamidou Jah's business interests but also raises concerns about exploitation. Gacem, for instance, reportedly buys cement from Jah Oil, exploiting Jah Oilβs Special Investment Certificate to avert import duties. Gacem turns around and charges D30 more for the same cement.
Oddly, Finance Minister Seedy Keita previously opposed such policies citing concerns about free market principles and insufficient domestic capacity to meet demand. This lack of capacity will inevitably lead to price hikes like those already seen in Soma and Farafenni just last week. These rural communities, with limited access to established supply chains, will be the hardest hit by these monopolistic practices. The lack of sufficient supply is further exemplified by the fact that Jah Oil is scrambling to secure new supply routes from Nigeria, yet again proving he is also merely importing cement and is only after his profit and those of his family of businesses.
The dominance of companies like Jah Oil stifles innovation, raises consumer prices, and weakens worker bargaining power to maximize profits. This is evident in Jah's struggle to retain drivers who found better pay and stronger unions in the competitive logistics industry. A competitive market empowers both the country and its workforce, allowing them to earn a fair wage.