Dangote Cement Ghana Limited has flatly dismissed allegations by local cement manufacturers that it's engaged in unfair trade practices in the country.
The Cement Manufacturers Association of Ghana, in a recent press statement, expressed dissatisfaction with what they termed as unfair trade practices by Dangote Cement.
The association pointed out that the powdered cement being imported by Dangote into the country was a finished product that could be delivered directly from the ship side to a customer for any construction work, among others.
According to the local cement manufacturers, the duty paid on Dangote Cement was inappropriate.
But Dangote Cement Ghana Limited, in a response, said allegations by Ghanaian cement producers, namely GHACEM and Diamond Cement, were unfounded and lack legal basis.
At a press conference held on Thursday in Tema to respond to the allegations, Managing Director (MD) of Dangote Cement Ghana Limited, Tor Nygard, explained that GHACEM and Diamond cement continue to make many “inaccurate” statements about Dangote cement's operations in Ghana.
According to him, “GHACEM has since 2010 petitioned almost all governmental agencies in Ghana about this same claim of unfair trade practices and that we do not pay approved tariffs.”
As far back as 2011, the Tariff Advisory Board ruled on this claim. At that time, we were paying a 5 percent tax rate for our bulk import, which of course was what the law said, he said.
However, with this same accusation of unfair trade practices, our tax was increased by 100 percent, he added.
He said “we want to have it on record that we pay customs levies, VAT and all taxes so due for our imports from Nigeria. The impression being created is that because of the ECOWAS Trade Liberalization Scheme (ETLS), we do not pay any penny on our imports and that is inaccurate.
He further pointed out that “we also do not know of any 30% subsidy that they claim we enjoy from Nigeria.”
He argued that his outfit had since its establishment in 2010 maintained best practices in the industry.
“At the time, we entered the Ghanaian market with the highest grade of 42.5R, GHACEM, in their infamous TV commercial, claimed our product was inferior. Today, they have been compelled by the market trends to hurriedly introduce the 42.5R grade even though it is more available in their newspaper adverts and on billboards than on the market,” he noted.
He denied claims by local producers that Dangote Cement was underpricing its products to beat domestic competition, explaining that “the customers buy the cement based on quality, price, reliability of delivery and customer service.”
“This is where our focus is and the market has noticed the effect of our entry into the Ghana, resulting in a stable and even reduced price in the market,” he added.
“We want to assure Ghanaians that with our continuous presence on the market, prices of our products will remain affordable such that those who want to put up houses could have long-term plans because they can expect stable prices of cement in the future,” he said.
Low Contribution
He accused GHACEM and Diamond Cement of doing little to contribute positively to the development of the Ghanaian economy.
“GHACEM and Diamond cement boast of contributing to the economy of Ghana by employing a large number of Ghanaians. For almost 50 years, GHACEM and Diamond cement together employ less than 3,000 people,” he said.
He stated that “within only six years of operating here in Ghana, we (Dangote cement) have, as of today, over 2,000 workforce on our payroll. This figure does not include the 2,400 drivers' mates that assist our drivers on the road and the over 20,000 people, who are indirectly benefitting from our operations here in Ghana.”
End of Monopoly
Senior Communications Executive at Dangote Cement Ghana Limited, Etornam Buami said GHACEM, after more than 50 years of enjoying monopoly, still wants government to “babysit it.”
He said local manufacturers should focus on how to adopt new innovative measures instead of complaining because Dangote Cement would continue to operate within the confines of local and international laws.
By Melvin Tarlue
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