Cost Of Cement: Production Factors Still A Challenge

A major event took place in the sea port town of Kribi on Friday 18 July, 2024. It was the inauguration by the Prime Minister, Head of Government, Joseph Dion Ngute of the CIMPOR Cement factory. With an annual production capacity of 1.2 million tons when the factory gets fully operational, the news should be enough to raise the hopes of Cameroonians. Notably, that an increase in supply could readily meet the ever growing need for cement in the market. In addition, they could henceforth hope to get the product at a reduced cost.     
The sense of optimism is further heightened by the fact that CIMPOR is coming into a market where a 48-year-old monopoly by the Cimenteries du Cameroun (CIMENCAM) owned by Lafarge Holcim had been broken some nine years back. Five other cement producers already exist. Namely: CIMENCAM, MIRA Cement Ltd, Dangote Cement, CMCC and CIMAF Cameroon. Hope for a drop in cement prices has actually been looming in the air for long. People have even had to make speculations and comparisons on the basis of what obtains in some neighbouring countries of prices. But over the years, the reality has been different. Fixing the price of any commodity must be based on a number of factors, even if those considerations may hardly sink well with the clients. More so, hardly any businesses or companies go out to communicate on the reasons why certain prices remain high. Even in situations whereby the population is legitimately hoping for something better.     
Already, for the current business environment in the country, the arrival of the CIMPOR Cement Plant which is part of a Tûrkiye-run Consortium is a big boost to the economy. With a colossal sum of FCAF 50 billion invested to get the company off the ground and 200 direct jobs created for young Cameroonians, there is every reason to welcome the initiative. Added to this will be the several indirect employment opportunities that such a plant will bring along. The country has over the years embarked on several game-changing major projects at the behest of the President of the Republic as part of the major accomplishment programme which has within the last seven-years been christened the Major Opportunities. Such infrastructural shift in the country requires cement and even the tons of calcium clay CIMPOR is promising to produce. Now there is the nagging problem of the raw material that will power the cement plant. Like others before CIMPOR, the production of clinker which is needed in any cement factory could be a major point of concern. If it has to be imported, then the question arises as to the cost of having the product regularly. This raises the complication of providing communication structures (roads, railway) and facilities that could enable the raw material to be transported to the production areas. Movement within the Central African Economic and Monetary Community has been such a huge issue. Talkless of going out to other parts of the African continent. It is mind-boggling that certain goods are easier to import from Europe than getting the same from a neighbouring African country just because there are no roads infrastructure that can facilitate trade. Or non-existent legal provisions to facilitate business transactions. Challenges of this nature have often come to add to the umbrella question of the need for a favourable business climate. Over the years, the Head of State has exhorted civil servants and other administrative officials who simply remain in offices and spend time blocking those who are eager to invest in the country to lessen their grip on the economy. To get to the level of an industrial outfit like CIMPOR and many others, the hurdles could have unimaginable. Yet, once a company succeeds in overcoming such bottlenecks, the temptation will be to ensure that the factors of production take into consideration the business environment within which they operate.     
Within the various development projects initiated by government and private companies, the general trend is clear that more cement will be needed across the country. This is to say the increase in the produ...