Understanding Gambia’s Cement Shortage 

The Gambia has recently faced an acute shortage of cement, affecting construction projects nationwide. 

The Gambia typically uses between 100,000 and 110,000 bags of cement daily during peak times, and around 45,000 to 50,000 bags during off-peak times, as reported by The Point Newspaper.

Three local companies, Jah Oil, Salam, and Gacem, supply cement and are estimated to consume over 100,000 bags per day. 

This scenario has led to frequent changes in cement prices, which have reached D500 in various parts of the country.

There is an ongoing conflict between local companies and importers. 

The cement shortages have ignited disputes between local firms and importers. This explainer will delve into the issues that have led to the shortages in cement production in The Gambia.

Brief history of the policy  

In April 2024, the government implemented a policy that raised the import duty on bagged cement from D30 to D180 per bag. 

This significant increase in tariffs, intended to limit cement imports from Senegal, was met with protests from the Association of Cement Importers, who urged the government to reconsider its decision. 

This policy effectively halted cement imports into Senegal, resulting in shortages and a surge in cement prices. 

After the policy was enforced, hundreds of trucks carrying cement from Senegal were stranded at the border in Farafenni.

Trucks stranded at Farafenni border: Freedom Newspaper 

What are the importers saying?  

The recent cement shortage has led the importers’ association to advocate repealing the policy restricting cement imports from Senegal. 

During a recent press conference, the association stated that local companies are struggling to provide sufficient cement for the country. 

Cement Importers Association press conference: image source: The Fatu Network 

Many believe the fundamental issue lies in the government policy introduced in April 2024, which raised the import duty on bagged cement from D30 to D180 per bag, effectively halting cement imports. 

The government asserts that the policy was intended to support local manufacturers, including Jah Oil Company, Salaam Cement Company Ltd, and GACEM, claiming that these companies could meet the country’s cement needs.

Customers and vendors express frustrations 

Local vendors and customers have expressed frustration with the policy. 

Baboucarr Mbaye, president of the association, highlighted the challenges faced when importing cement, attributing the price increase to government restrictions on imports. 

“What we are experiencing now is tough. You purchase your cement, which takes over 20 days to receive. 

The government should permit importation as it’s the only viable solution,” he emphasised. 

Lamin Cham, a cement retailer, also stated, “I haven’t had cement for a week now.”

“To obtain supplies, you must wait in line for a week or two.  Salaam is produced, but not in large quantities like Jah Oil. They are only supplying a few bags,” he added.

Cham, whose store used to be filled with cement, is now empty as they struggle to obtain cement from local suppliers.

Muhammeh Sanneh, a customer, also shared his concerns about the difficulties the cement shortage has created for his construction project. 

“I began building my house, but cement is too costly and complicated to get.

Last month, a bag was D385 at the factory, and now it’s at D450 and in some areas D500,” he noted. 

Korka Bah, a prominent camera operator and TV show host, also voices his frustration via a TikTok video about the cement crisis. 

Baba Drammeh, an executive member of the cement importer association and a businessman, informed reporters that local companies cannot meet the country’s demands. 

Mr Drammeh stressed the economic impact of the import tariffs, indicating that the cement price has risen from approximately D370–D380 per bag to over D470–D480 since the policy was implemented.

“Before the import ban, cement was available for D370 and D380. Today, the price of cement exceeds D470 and D480. 

That marks a significant increase in cost,” he stated.

Through the Ministry of Trade, the government has explained the factors contributing to the cement shortage. 

Cement price hike allegations 

Despite having three local cement suppliers, the Association of Cement Importers has only accused Jah Oil, the country’s leading cement supplier, of raising prices.

In response, Jah Oil Company General Manager, Momodou Hydara, denied the allegations and attributed the cement shortage and rising prices to ongoing geopolitical tensions and increased tariffs. 

He clarified that the wholesale price is D380 at the factory and D415 at their stores. 

“We are all aware that there is a market disruption in the cement industry leading to a sudden increase in the price of cement in the world market due to the tariffs imposed by Donald Trump on other countries,” he stated. 

He explained that the American cement industry imports from Vietnam, and when Trump imposed a 47% tariff on Vietnam, American businesses shifted their focus to Egypt and Turkey, which are also key sources for Jah Oil. 

Hydara confirmed that the company can supply the market and announced the importation of 53,000 metric tons.

See videos and images of Jah Oil trucks loading cement at the port. Image Source: Babucarr Bahoum 

The policy’s impact on workers, particularly in the transportation and construction sectors, has been significant and concerning. 

Modou Secka, a truck driver, lamented that many drivers are facing economic hardships due to the slowdown in business resulting from the new policy. 

“The reduction in demand for transportation services has led to job losses, leaving many families struggling to make ends meet,” he said.

The cement shortage exacerbates the situation, which has a cascading effect on the construction industry. 

With fewer drivers working and cement importers unable to operate at full capacity, construction projects are delayed or halted. 

This affects not only the livelihoods of drivers but also construction workers, suppliers, and the broader economy.

Conclusion

The current policy restricting cement importation from Senegal needs to be thoroughly reevaluated to foster a competitive environment that can increase cement supply and lower costs. 

Addressing the ongoing cement shortage is crucial for revitalising the construction industry and ensuring that workers in both transportation and construction can secure their jobs, support their families and promote economic stability.