The Gambia is currently experiencing a severe cement shortage disrupting construction projects and driving up prices to over D500-D625 per bag. Critics attributed the problem to government’s decision to increase the import tariff on bagged cement from Senegal from D30 per bag to D180 per bag which proved unattractive to cross border traders who accused government of giving monopoly to companies like Jah Oil.
Addressing the current shortage, the managing director of Jah Oil Companies Momodou Hydara yesterday told journalists that the ongoing cement shortage is caused by external factors such as the shallow Banjul Port channel which is preventing large vessels (needing 13.5-15m) from berthing, and bad weather disrupting lighterage operations with smaller boats.
Mr Hydara insisted that the company has the capacity to supply the country enough cement.
“As we speak, we have two vessels stranded at sea with 55,000 tons and 59,500 tons of cement each and another vessel with 55,000 tons is on its way to Banjul. The two vessels are carrying about three million bags worth of cement. You cannot consume that in this country in three months. We know the consumption of this country when it comes to cement. Some 30,000 metric tons is enough for a month,” he added.
He said the company has also invested heavily to expand its factories, adding that a new facility with the capacity of 100,000 per bags a day is currently operational in Farafenni while another is about to be launched in Bafuloto with 200,000-bags per day capacity to meet national demand twice over.
Hydara said the company has not faltered on its promise to import enough cement but it has limitations on what it can and cannot do.
“All we can promise the population is to bring enough cement to ensure consistent supply. It is the responsibility of GPA to ensure that ships are docked here and this matter has been on years. We have written series of letters reechoing the need to dredge the channel so that it can facilitate the sail of our vessels and many other vessels facing restrictions,” he added.
He said the company has bought two seagoing vessels with each of them having the capacity to carry 4000 tons to help facilitate the transfer of cement from the bigger vessels to the port.
Price increment
Reacting to the escalating cement prices, Mr Hydara said Jah Oil cannot be held responsible for recent retail price hikes to over D500 per bag, blaming retailers, and market manipulators rather than factory increases.
Hydara accused some cement retailers of deliberately inflating prices, despite the company maintaining its factory price at D390 per 50kg bag amid ongoing shortages and global cost pressures.
“They are doing this to tarnish Jah Oil’s image but they are hamming the very people they serve our sisters, brothers and parents.”
He explained that there is no justification for any retailer to sell a bag cement at D500.
“If you buy the bag at D390 retail price no matter where you are taking it to it should be up to D500 or more. That is not justifiable and the government should do something about it,” Hydara said. He also accused drivers of deliberately increasing prices and urged the government and the transport union to ensure that these things are regulated.
Hydara added that Jah Oil can only assure Gambians of enough cement supply and maintain factory price but “we cannot control the price”.
