BREAK DUOPOLY IN CEMENT INDUSTRY

Page 7: Daily Graphic, May 24, 2012. THE shortage of cement in the country appears to have become a perennial problem. When it strikes annually, those in the building and road construction sectors suffer most. Their projects are unduly delayed, with the attendant increase in project cost. Besides, those engaged to work for individuals or institutions in the construction sector find it difficult to maintain their keep. Often, the producers and dealers have always found one reason or another to explain the shortage – power outages, natural disasters, refurbishment or expansion works at their factories, etc. The Daily Graphic thinks that the shortage of cement is becoming one too frequent for us to bear as a nation. When it happens, it is the ordinary people who suffer most as a result of the high prices that come with the available cement on the market. Sometimes we are tempted to think that the shortage is artificially created by the producers and dealers, with the view to increasing the cost. Currently, a bag of cement is being sold between GHc22 and GHc25 on the market. We are tempted to believe that the duopoly enjoyed by the two major producers of cement may not be helping us, after all. We may have to consider wooing more cement manufacturers into the country to compete with the two cement firms, the Ghana Cement Company (GHACEM) and Diamond Cement. We do not think that the nation deserves this kind of situation when there is a boom in the construction industry. The Daily Graphic appeals to the government, as a major player in the construction sector, to take the bull by the horns to address whatever challenges Ghanaians are facing. The government cannot prevent natural disasters but we believe it can create the environment for individuals to import cement into the country to compete with the existing production firms. There is also nothing wrong with developing local raw materials to serve as an alternative. This is where we expect our research institutions and industrialists to explore the use of local raw materials to build a robust cement industry in the country. The nation may not have undertaken any impact analysis of the cement shortage in the country. However, in the heat of the economic downturn, an estimated 30,000 workers in the construction industry in Jamaica lost their jobs – as a result of the production of concrete blocks and closure of construction sites. Our worry is that any time cement prices go up as a result of shortages, the prices do not come down when the situation returns to normalcy. This time around, we expect the Ministry of Trade and Industry to restore some order into the cement business. That is why the Daily Graphic is urging the government to look into the frequent cement shortages in the country. We should not forget that some of the players in the construction industry may have secured bank loans to embark on projects and any delay means extra cost to them. The benefits to be derived from any construction boom can translate into higher growth, job creation, as well as the expansion of other manufacturing sectors. The Daily Graphic, therefore, thinks that whatever the constraints are, we must put our shoulders to the wheel to address them as soon as possible.