Liberia: Gov’t Grants Star Cement Company Right to Enter Cement Market -As Company Envisages US$41 Million Investment
Monrovia – The Liberian Government under the leadership of President George Weah, has granted the right to enter and do business in the cement industry to Star Cement Company.
The company has envisaged a US$41 million investment in the nation’s economy and intents on creating a competitive cement market to the benefit of the consuming public.
While the company welcomes the effort of the government in granting it the right to participate in the production and importation, when necessary through the ECOWAS Trade Liberalization Scheme (ETLS), of quality cement for local consumption, Star Cement’s Management announced how pleased to have been given the approval to establish a cement manufacturing plant in Monrovia.
The special investment incentive was ratified by the Legislature in June 2019 and signed into law by President Weah consistent with his campaign promise of “power to the people”.
In a press statement from the company, it mentioned that the investment which is estimated at US$41 million will bring a factory that will create thousands of direct and indirect jobs through employment, contracts and distribution. “The company is hereby optimistic that this will benefit the ordinary Liberians and expand government revenue base through income tax collection.”
The company is expected to produce an estimated 600,000 metric tons of cement yearly which when it becomes fully operationalized. The quantity of production is equivalent to 12 million bags of cement.
“With this factory, the price of cement is expected to drop on the Liberian Market which will see a boom in the construction industry as many Liberians will have access to a competitive and price affordable cement market. Through this process, jobs is not only expected to be made available by the company but other construction companies that will take advantage of this new dispensation of price affordability in the cement market,” they said their press statement.
For more than 40 years, CEMENCO has been the only factory in Liberia producing cement. With the introduction of Star Cement, the market is going to be competitive and there might be likely be a significant reduction in the price of the commodity thus providing immense benefit to the cement consumers of Liberia.
Meanwhile, Star Cement Company is aggressively making effort to ensure that Liberia benefits from the ETLS by commencing export of cement which will help with the earning of United States Dollars to enable a reduction in the scramble on the local market for the United States Dollar, a key instrument for the importation of goods and services.
The cement company is expected to begin production within the next 12 to 18 month. According to the company, they will begin selling shares to interested individuals.
Star Cement Management expressed its gratitude to President Weah and members of the Legislature for creating the opportunity for them to invest in the Liberian economy. They added: “This demonstrates the political will of the Weah Administration to implement the Pro-Poor Agenda which seeks to alleviate the harsh economic consequences on the suffering masses of the Liberian people.”