By Mabinty M. Kamara
The Minister of Trade and Industry, Dr. Edward Hinga Sandy, has disclosed plans to engage cement mnufactures and suppliers amidst concerns over the rise I prices of the commodity in Sierra Leone.
Mr Sandy told journalists last week that he had agreed with the stakeholders to renegotiate despite the challenges the companies involved face.
Two companies: Dangote and Leocem, dominate the sector.
Sandy said their concerns and challenges included technical issues and the new tax levies, which they said had affected the importation and manufacturing of cement, leading to the shortage in supply of the product.
“Leocem has problem with the grinding machine and electricity, whiles Dangote for instance had a couple of technical challenges. And the ship that was bound for Sierra Leone had a technical issue and needed to be taken to a nearby shore for repairs. The importers have issues around new taxes that are mitigating them from making more imports to Sierra Leone,” Sandy said at the weekly government press briefing on Thursday.
Minister Sandy then warned that the government was worried about the price of cement.
Cement had gone up from Le 63, 000 to Le80, 000 in the last week.
The Minister expressed hope that the price would soon be back to Le63, 000.
He revealed that there were up to 2.5 million bags of cement in the country and that once the supply resumed, the shortage will end.
To adjust the price, the ministry has also engaged Ports Authority to cut down tax, he added.
“We have tried to work with the Ports people. For instance, through our encounter with the two clearing companies at the Quay - Bollore and Nectar - we have been able to slice down on the cost of clearing cement to about 30%. We have also been able to cut down on the cost for destination inspection. They value and then classify before finally customs make the customs charges,” he explained.
Inflation and price control has been a major challenge for President Julius Maada Bio’s administration. Inflation has been in double digits since he took over in 2018. This affected commodity prices.
The fluctuation in the value of the Leones against the US Dollar has also not helped the situation.
Sandy said despite understanding these challenges, the government couldn’t intervene to set price on goods because it’s operating a liberal economy.
