The cement industry in Ghana is set to see increased competition that may force prices of the commodity down as more companies enter the market.
It follows the establishment of a 100 million dollar factory in Takoradi, by Dangote Cement to expand its operations in Ghana.
In addition, the Chinese Ambassador to Ghana Madam Sun Baohong has also disclosed to Citi Business News that a number of Chinese cement producing companies have indicated their interest to move into Ghana to produce the commodity for redistribution across the West African sub-region.
But speaking to Citi Business News, the Media Relations Officer of Dangote Cement, Etornam Komla who was optimistic of the sustainability of Dangote’s operations in Ghana stated that the competition will improve pricing in the industry.
“When it comes to competition, we are not disturbed about it because of the way we have made our products to win the trust of the Ghanaian market. We are ready for every type of price competition,” he said.
According to him, the decision by government to open the cement industry to allow many players will not only benefit the market but will help create jobs for the youth.
He, however maintained that government must be careful in screening the companies that enter into the country to prevent the market from being flooded with inferior products.
Pointing out the dangers that an oversight will have for the construction sector, Mr. Komla stated that standards must be adhered to provide quality cement to the Ghanaian public.
“We want to suggest that when we talk of some these inferior goods coming from outside they may not be good for the Ghanaian market, so they must be certified to make sure they meet the Ghanaian market standards,” he stressed.
He warned that if authorities fail to check the quality level of cement that are produced in the country, the market may be flooded with fake products which may lead to the same situation witnessed in the textile industry when there was an influx of fake products.
By: Lawrence Segbefia/citibusinessnews.com/Ghana