BANJUL, Dec 19 (The African Portal) – The Gambian government has lifted the D180 excise tax imposed earlier on imported bagged cement, but retail prices across the country have remained largely unchanged, triggering public criticism and renewed calls for stronger market regulation.
In April 2024, authorities raised the excise duty on imported cement from D30 to D180 per 50-kilogramme bag, introducing a D3-per-kilogram levy. The measure was justified as a policy aimed at protecting local production and promoting industrialization by discouraging imports, particularly from neighbouring Senegal.
The decision, however, came under intense scrutiny from critics and importers, who accused the government of favouring local producers, notably market leader Jah Oil Company.
Despite logistical challenges linked to congestion and capacity constraints at the Banjul Port, Jah Oil has maintained a wholesale price of about D390 per bag, according to industry sources. The company is currently reported to have two cement vessels stranded offshore, carrying about 55,000 tonnes and 59,500 tonnes respectively, with another shipment of about 55,000 tonnes en route to Banjul.
Shortages in some areas have nevertheless led to sharp retail price increases, with bags selling for between D500 and D625 in certain markets.
Under mounting public pressure, the government has now reversed the policy and quietly lifted the D180 tax on imported cement. However, the expected price relief has yet to materialize.
In Farafenni and other parts of the country, imported Senegalese cement, largely of the 32R strength class, is currently selling for between D450 and D625 per bag. Receipts seen by this medium from shops in Farafenni confirmed retail prices of D450 and D500.
Some shopkeepers said wholesale prices remain high. One retailer in Farafenni, Modou Jallow, told journalists he purchased cement at D425 per bag and was selling it at D450, describing the margin as insufficient to significantly lower prices compared with supplies from local producers.
Analysts and commentators argue that the persistence of high prices points to deeper structural problems beyond taxation.
Writing on social media, Swedish-based Gambian commentator Lamin Ceesay said the tax reversal had exposed what he described as “unrestrained profiteering and regulatory failure” in the cement market.
“This is no longer just a tax story; it is about market capture and weak oversight,” he said, arguing that importers, bulk distributors and some retailers were imposing excessive margins without transparent cost justifications.
Economist Lamin Sallah echoed similar concerns, warning that high cement prices undermine national objectives on housing, infrastructure and job creation.
“Authorities cannot claim success for lifting the tax while refusing to confront the profiteering that keeps prices high,” he said, calling for full cost transparency, stricter competition oversight and stronger consumer protection.
Another commentator, Mohammed Jallow, said the situation represents a “policy contradiction,” noting that cement imports granted duty waivers are still sold at prices that assume full taxation, depriving the state of revenue while burdening consumers.
He urged the Ministry of Finance to review and publish the full cost of duty waivers, the Gambia Revenue Authority to strengthen valuation and auditing, and the Gambia Ports Authority to address inefficiencies often cited to justify price hikes.
Import volumes
According to sources familiar with recent imports, an estimated 75,000 bags of cement entered the country between Saturday and Tuesday. The consignments were cleared by 77 trucks, most carrying about 1,000 bags each.
Quality concerns
Concerns have also been raised about the quality of imported cement. Cement grades marked 32R and 42R refer to strength classes rather than brands, with 42R offering higher and faster strength gain suitable for structural work, while 32R is generally used for lighter, non-structural applications.
Local builders say the lower-grade 32R cement, widely imported from Senegal, is less suitable for heavy construction and yields fewer durable blocks per bag, raising questions about long-term safety and value for money.
Industry practitioners argue that without decisive regulatory action to ensure fair pricing, quality standards and transparent competition, the lifting of the cement tax will offer little relief to Gambian consumers.
Credit: Voice Gambia
