By Tabora Bojang
Amid a raging uproar over the acute shortage of cement in the country, Trade Minister Baboucarr Joof has explained that the shortage is caused by the termination of local supplier Jah Oil’s contract with its Egyptian suppliers.
Most Gambians and cross border traders have accused government of imposing high tariffs to protect companies like Jah Oil, which they said, cannot meet the local demand anyway.
But in his explanation to The Standard, Minister Baboucarr Joof said Jah Oil which gets cement from Egypt, had its contract terminated as a result of what is going on globally.
“It is the impact of tariffs placed on Vietnam that shifted attention to Egypt and Turkey which are our main sources. The supply end also had some challenges and as a result Jah’s arrangement with their supplier was terminated. But re-negotiation is on and we are doing everything including the involvement of the state,” he said.
Minister Joof said since Jah Oil supplies over 50 percent of the market, its current troubles affects the market.
“They are the biggest producers. The other two, Gacem and Salam, are producing at their installed capacity but that is never enough for the market,” he said.
Asked if the scarcity is not a vindication that the government’s decision to increase tax on imported cement mainly from Senegal, from D30 to D180, is not a good idea, Minister Joof maintained that government has no regrets with the decision because its long term benefits will soon click which will bring stability in the cement market.
“That decision is even more important today than ever. I still maintain that position that it is the best thing we have done for this country’s economy and we will stabilise this problem,” he assured.
