Gabonese Government Issued a Ban on Importing Cement, After a Year, the Market Is Short of Supply and Materials Are Soaring

The Gabonese government has issued a temporary ban on the import of cement for a period of two years from July 19, 2017. The Canadian government issued the above ban mainly to protect domestic cement enterprises. In recent years, due to the entry of a large number of cheap foreign cement into the Canadian market, Canadian cement production enterprises are facing difficulties in operation and even on the verge of bankruptcy. For

nearly two months, the supply of cement in the capital and other provincial cities has become an epic test. The Moroccan group Cimaf is no longer able to meet the strong seasonal demand due to a serious shortage of supply and a 50% increase in prices. The Moroccan group Cimaf has a monopoly on local cement and has assured the government of its ability to stabilize the Gabonese market with sufficient supply and reasonable prices. There is a shortage of cement

in Gabon, which now trades at a high price. At Owendo's plant, truck drivers complain that you have to wait patiently, often for three or four days, and because of the severe shortage of supply, cement now trades between 100,000 and 120,000 SF per ton. Far more than the 77,000 francs promised by Moroccan manufacturers.

Authorized distributor: "Given that Cimaf has difficulty in producing cement in large quantities, you can wait 3 or 5 days to get the goods you need. We have no choice but to sell the cement at a price of 100,000 or more.". The rise in the price per ton is dazzling. Moroccan group Cimaf has announced some mitigation measures

in response to a sudden doubling of cement demand during the peak season. This will take several months to implement. The Government reserves the right to suspend or lift the ban on the import of cement in the event of a breach of the obligations set out in the regulatory agreement. Meanwhile, if the national government does not intend to open up the import of cement, the entire construction sector will be paralyzed.

In order not to "force" the government to review in depth the terms of the agreement with Moroccan manufacturers, its leaders quickly submitted plans to restore the cement supply market. The head of the

Moroccan group Cimaf announced a series of comprehensive measures: in less than two months, it will invest more than 1 billion euros to add a second cement production line, which can produce 350,000 tons per year, to ease market demand.