Cement Crisis: Industry Leaders Point to Port Bottlenecks, Flawed Policies & Market Failures as Key Culprits

0
83
CGI President Hon. Sir Farimang Saho

By: Kebba Ansu Manneh

The Confederation of Gambian Industries (CGI) has attributed the persistent cement shortage crippling the country’s construction sector to a complex interplay of logistical constraints at the Port of Banjul, policy-induced distortions in the import market, and structural weaknesses in competition and governance.

In a policy brief issued on December 25, 2025, and signed by CGI President Hon. Sir Farimang Saho, the organisation warned that addressing only one aspect of the crisis would fail to resolve its root causes. The brief, shared with The Alkamba Times (TAT), calls for immediate government action alongside medium- and long-term reforms to stabilise supply, protect consumers, and foster genuine industrial growth.

“The cement shortage is not the result of a single failure,” the brief states. “It is the product of interacting logistics constraints, policy-induced market distortions, and structural weaknesses in competition and governance.”

The crisis has driven retail prices for a 50kg bag of cement from historical averages of GMD 300–400 to GMD 500-650 in many markets, despite reports of tens of thousands of tonnes stranded offshore. This surge has ripple effects across the economy, sharply escalating construction costs, undermining housing affordability, and stalling public infrastructure projects. Small contractors and related small and medium enterprises (SMEs) face severe liquidity stress, leading to job losses and closures in brick-making and construction-related businesses.

CGI emphasised that the shortage has also eroded public trust in market regulation and weakened confidence in industrial policy. “Consumer protection and industrialisation are not mutually exclusive,” the brief asserts. “Both can—and must—be pursued simultaneously.”

Diagnosing the logistical bottlenecks, CGI highlighted the Port of Banjul’s insufficient channel depth and berthing capacity, which prevent modern, deeper-draft vessels from docking. “Significant quantities of cement have remained offshore, delaying supply and increasing costs,” the brief notes. “Without accelerated dredging and interim mitigation measures, the port will remain a structural bottleneck that amplifies any future supply shock.”

On the policy front, recent excise and tariff adjustments on bagged cement imports—combined with route restrictions—have raised landed costs for importers, particularly small cross-border traders from Senegal, while reducing competitive pressure. CGI acknowledged that infant-industry protection can be justified but stressed it must be “time-bound, targeted, and performance-linked.” In its absence, such measures risk entrenching market concentration rather than delivering sustainable domestic manufacturing.

The brief further criticised the cement market’s high concentration, opaque permitting processes, and limited price transparency. “Weak competition enforcement allows supply disruptions to be converted into sustained price increases, to the detriment of consumers and downstream industries,” it explains.

The economic and social fallout is stark: delays and cancellations of private construction projects, higher costs for public infrastructure, closures of small enterprises, and reduced household incomes. CGI argued that these outcomes reveal failing market mechanisms unable to translate available supply into stable, affordable prices.

To address the crisis, CGI proposed a roadmap starting with immediate actions within 0-3 months. These include opening a limited, time-bound import window through competitive licensing, allowing multiple verified suppliers to deliver via land and sea routes under government supervision. It also called for mandatory price transparency, requiring wholesalers and distributors to publish daily ex-warehouse prices and retailers to display supplier invoices.

For the medium and long term, CGI advocated a coherent national cement strategy integrating port and logistics planning, clear targets for domestic value addition (especially clinker production), performance-based incentives tied to technology transfer and skills development, and alignment with ECOWAS and AfCFTA trade frameworks. It urged equipping competition and consumer protection authorities with stronger mandates, rapid-response tools, and adequate resources for market emergencies.

Concluding the brief, CGI offered collaboration: “CGI stands ready to work with government and industry as a convener, technical partner, and independent monitor. We will support genuine local manufacturing and regional integration while opposing protectionism that lacks measurable performance outcomes.”

The policy brief comes amid ongoing debates over the shortage’s causes, with some stakeholders pointing to earlier tariff hikes and port delays. CGI’s analysis provides a comprehensive framework, urging balanced reforms to turn the crisis into an opportunity for resilient industrial development.

LEAVE A REPLY

Please enter your comment!
Please enter your name here