The authorized Cement Distributors Association of Liberia (ACEMDAL), Incorporated has appealed to the management of CEMENCO to revisit a recent decision reached between the Ministry of Commerce (MoC) and the institution to reduce the retail price of the commodity on the market from US$8.50 cents to US$6.85 cents.
According to ACEMDAL, the decision to reduce the price of cement was abrupt, and did not involve the leadership of the distributors and retailers to harmonize it by adopting an effective enforcement strategy.
ACEMDAL’s Chairman Varmah G. Moore said although they welcome the decision to reduce the price of the commodity, they remain aggrieved, because they were not part of the process to make a positive impact that could have benefited distributors, retailers and end users.
“As Liberians, we support the President’s pro poor agenda, but if the government or management of private entities wants to reduce prices of commodities on the market, the management ought to inform the retailers and/or distributors so that we can be part of the decision,” Moore said.
Moore said following an intensive analysis and thoughtful investigation of the key factors affecting the cement market, ACEMDAL is recommending that distributors have legitimate contracts with CEMENCO, authorizing them to only sell the company’s product.
He added, “Therefore we consider the recent decision between CEMENCO and the Commerce Ministry as a threat to counts 1-4 of the existing distributorship agreement between CEMENCO and ACEMDAL, especially when there is no indication that distributors have violated the agreement.”
Mr. Moore said that the decision reached between the ministry and CEMENCO management to reduce the retail price of the commodity is welcome, but that the corporation should have at least liaised with ACEMDAL to determine the new price for distributors and retailers.
It may be recalled that on August 3, 2018, CEMENCO announced a reduction in the price of cement per bag for end users in various parts of the country.
CEMENCO General Manager William P. Gaignard told a recent news conference that the new price varies per location in the country, but it is expected to make a major impact on the construction sector. The new price per bag of cement for end users in Monrovia and its environs will now be US$6.85, down from the current price which is more than US$8.50, depending on the location of the sale.