Published on December 12, 2023 Reading: 1 minute.
A reduction of 150 CFA francs, approximately 22 euro cents, per 50 kilo bag. This is what Luc Magloire Mbarga Atangana, Minister of Commerce of Cameroon, imposed on the country’s cement manufacturers, by publishing on December 11 a price list on cements marketed by Dangote Cement Cameroon and Cimpor Cameroon. Thus, the 50 kg bag of Dangote’s Falcon 32.5R goes from 4,600 to 4,450 FCFA.
Read: Cameroon: how Mira Cement tickles Dangote on the cement market
This approval follows a first action, in November 2023, which targeted Cimencam (the market leader), Mira Ciment and Cimaf. The State had obtained reductions ranging from 300 to 500 FCFA.
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These ceiling prices apply to the entire country, recalled the minister, who encouraged “distributors to ensure customer loyalty and interest in new customers [avec] prices lower than those approved.
Curb inflation
This year, Cameroon produced 5 million tonnes of cement, through five multinationals, for a total turnover estimated at 190 billion FCFA, according to the local press. Production sold on the local market and in the countries of the Central African Economic and Monetary Community.
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Dangote Cement, a Nigerian multinational which holds 32% of the Cameroonian market, recorded a net profit of 64.8 billion naira (128 million euros) in the country in 2022. Moroccan Cimaf, which plans to triple its production – passing from 500,000 tonnes to 1.5 million tonnes –, obtained a permit to operate a marble quarry in 2019. It thus hopes to substitute clinker for marble, in order to limit its exports.
To read: Highly in debt, Cameroon goes on a dry diet
By fixing cement prices, the government is highlighting its desire to fight against the cost of living. In September, inflation stood at 7.8% in Cameroon, according to the National Institute of Statistics. Already in 2021, the executive responded to the 400% increase in freight costs with an 80% tax reduction on customs duties. In the country, prices of consumer goods are established by an agreement between the state and the sector concerned.
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2023-12-13 01:13:41
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