By Sorie Fofana.
The price of some essential commodities like rice, cement and iron rod has increased rapidly over the past two weeks. A spokesman for the Ministry of Trade and Industry, Emmanuel Konjor, attributed the rapid price increase to the increase in freight cost in the international market.
In the case of imported cement, there are two well-known importers in the country. They are, Fawaz Building Materials and Mackie Cement (MACCEM).
Mackie Cement is owned by the thrifty cigar-smoking Ahmed Mackie, who claims to be the Romanian Consul in Sierra Leone.
Fawaz Building Materials is owned by popular businessman and philanthropist, Haj Fawaz.
Mackie Cement
Ahmed Mackieโs company (Mackie Cement or MACCEM) was given a special concession by the Government of Sierra Leone to import cement.
Unlike other cement importers, Mackieโs company is exempt from the payment of 15% GST on imported cement. Instead of paying 20% customs duty on imported cement, Mackieโs company pays only 5%. By virtue of that special agreement, Ahmed Mackie is to ensure that cement is available in the local market at all times.
Unfortunately, Ahmed Mackie last week, decided to create an artificial scarcity in the country by hoarding 200,000 bags of cement the equivalent of 10,000 tonnes in his warehouse. His company was selling a bag of imported cement for Le95,000 to retailers instead of Le70,000. Some retailers decided to up the price to Le120,000 a bag after buying it from Mackie Cement at Le95,000 and at some point Le100,000 a bag.
The agreement between Mackie Cement or MACCEM and the Government of Sierra Leone was never ratified by Parliament, according to a senior ruling party Member of Parliament.
When MPs return fromย recess their next month, they are expected to demand for a thorough review of the agreement between Mackie Cement and the Government of Sierra Leone.
The Government should consider reviewing the charges imposed on importers by Nectar Sierra Leone Bulk Terminal (NSBT). Nectar are responsible for cargo handling operations at the Freetown Port at Queen Elizabeth II Quay at Cline Town. Their charges are alarmingly outrageous.
Fawaz Building Materials
Fawaz Building Materials have moved swiftly to address the issue of cement and iron rod shortage in the country by making urgent arrangements to immediately bring in 30,000 Tonnes (600,000 bags) of imported cement and a huge quantity of iron rod from Turkey. The two vessels are expected in Freetown by the end of September.
At a time when majority of Sierra Leoneans are going through hard times, people like Ahmed Mackie are busy engaging in profiteering and racketeering. Ahmed Mackie does not care how Sierra Leoneans feel, as long as he continues to make money. That is Ahmed Mackie for you!
The high freight cost in the international market coupled with the shortage of containers as a result of the COVID-19 pandemic, have led to the dramatic shortage of cement and iron rod in the local market, which has led to the sudden increase in the prices of these essential commodities. Over and above that, the exchange rate of the US dollar to the Leone has also gone up exponentially.
The Government of Sierra Leone should review some of the taxes levied on imported commodities such as iron rod and cement. The outrageous charges by Nectar are difficult to justify. They need to be urgently reviewed by the Government of Sierra Leone!
The Ministry of Trade and Industry needs to step up their public and media engagements to avoid negative speculations by the public.
