Africa-Press – Gambia. Long-standing cement dealer Alhagie Touray has expressed the hope that the US$20M Murabaha Agreement that the Gambia government signed in February will stabilize “the volatile” cement market.
For the past year, the cement market has been bogged in uncertainty and upheavals thanks to the imposition of a 300% tariff on a bag of imported cement by the Gambia government. The tariff increase led to the destruction of livelihoods, intermittent cement shortages, and price hikes in several parts of the country.
The trade ministry said last week that the “financing is intended to support the importation of non-oil (petroleum products) essential commodities to The Gambia, including rice, vegetable oil, sugar, cement, medicine, and other eligible goods under the ITFC Trade Financing Rules”.
“This initiative forms part of the Government’s broader efforts to stabilize and reduce the prices of these critical commodities for the benefit of the Gambia population,” the ministry said in a press release.
Farafenni-based long-time cement dealer Alhagie Touray welcomed the Government’s “move in trying to make essential food commodities and other essentials not only accessible to the population but also affordable”.
“It’s a perfect stride,” Touray acknowledged in an interview . He added: “It’s shows that the President is sensitive to the plight of the masses and then we are also very grateful to the minister of trade because cement is also on the list of essential commodities that could be imported under this financing agreement so that we can import cement and make the price cheaper for the people and ensure availability at all times. That’s the essence of the financing.”
To Touray, the roll-out of the financing is a test for the business community but he wondered whether the objective could be realized as regards cement.
“We hope to import cement and sell at affordable prices, but we are unsure whether this is possible under the current state of affairs because, since last year, the cement prices have been very volatile,” he stated. “We are grateful to the President and hope for the best because if certain things, such as the tariff on imported cement, persist, I could not see how availability, price stability, affordability, and accessibility could be guaranteed.”
Meanwhile, the Gambia government last year increased the tariff on a bag of cement from D30 to D180 ostensibly to “protect” local cement producers, such as Jah Oil, Salam, and Gacem cement companies, but Jah Oil has been importing pulverized cement through the Banjul Port.
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