Published on : 24/08/2022 – 23:56
Cement manufacturers have to deal with the international situation – first Covid-19 then the war between Russia and Ukraine – with rising production costs, while the price of a bag of cement, subject to the regime of the homologation, has not moved yet. They have been discussing for several months with the authorities to adjust prices, while some have had to stop their activity.
With our correspondent in Dakar, Thea Olivier
Since the beginning of August, more than 90% of the staff at the Dangote Senegal cement plant have been on collective leave and the plant has been shut down. The reason: the explosion in production costs linked to the rise in the dollar and the increase in the price of freight and coal, a material which represents 66% of their variable costs.
Ousmane Mbaye is the managing director of Dangote Senegal. “ All these impacts mean that the cement industry is currently going through very difficult times. Production costs soared so much that it was no longer profitable to produce and sell at this current price on the market. »
But cement prices are under approval. Adjustments cannot therefore be made without the authorization of the Ministry of Commerce. Ousmane Mbaye hopes talks will move forward by September, when he wants to resume production. ” We hope to find in some time a solution that will suit everyone, a price adjustment taking into account the costs that have exploded. And seek the right balance between preserving the consumer’s purchasing power and preserving investments and jobs. »
The Ministry of Commerce has already examined the cement manufacturers’ request and completed its conclusions, which it must still submit to the National Consumer Council before a decision is taken.
