Demand for Cement is Seasonal in Nature – Jobe

By Maria lopes & Ismaila Sonko

Lamin Jobe,   Minister of Trade, Industry, Regional Integration and Employment, has said that the demand for cement is seasonal in nature.

He explained that during the rainy season, we experience a decline in construction and therefore the demand for cement is lean throughout this period.

The Minister made this remarks on Monday during the first ordinary session of the National Assembly in the 2019 Legislative year Questions for verbal Answers.

He said that the construction works picks up immediately after the rainy season, thus the demand also picks up in December towards May. The imports of cement therefore, respond to these patterns on the average monthly imports during the peak periods varies between 30,000 metric tons and 40,000 metric tons whilst during the lean period the total average monthly imports varies between 17,000 metric tons and 22,000 metric tons (July to October).

“We have also observed that the total annual imports of cement have been increasing from 315,000 metric tons in 2016 to 391,000 metric tons in 2018” he said.

He also pointed out that the three main suppliers of cement are capable of supplying the whole country with cement because their combined installed capacity is 1,900,000 tons per annum. This is far above the annual national demand for cement which averages around 400,000 tons. Presently, the combined utilized capacity is around 23% of the installed capacity.

He explained that in addition, Jah Multi – industries is investing in construction of silos to improve and expand their storage capacity, both Salam and Jah cement companies are expanding their operations to transform the facility to grinding cement plant.  The expansion work started in 2018 and expected to be completed by the end of year 2019.

“The planned expansion is not only to meet national demand but also will be able to cater for the regional market such as Guinea Bissau, Conakry and Mali, “he noted.

He emphasized that the three main suppliers of cement all have a business registration certificate for cement retagging. GPPA registered and holds special investment (SIC) certificates.

He noted that the Ministry of Trade, Industry, Regional Integration and Employment in collaboration with the international organization for migration through the European union supported initiative for migrant protection and reintegration has extended support to 4,103 returnees with reception assistance (settlement); 2,255 returnees have been supported with reintegration assistance while 2,115returnees with micro business

“Sensitised over 6,600 people in 22 communities through outreach awareness by raising campaign on illegal migration, human trafficking and related risks, in the month of March 2019, the project is expected to graduate beneficiaries from its technical and vocational trainings which will be supported with start up packages,” he mentioned.