May 4, 2021
By Mohamed M. Sesay
The fifth Parliament of the Second Republic of Sierra Leone under the leadership of Dr. Hon. Chernor Abass Bundu, has on the 29th of April, ratified two agreements which are, agreement between the Government of Sierra Leone and MACCEM Industries for the construction and production of cement within the country with an estimated investment cost of ten million dollars($10 million).
Another financial agreement between the Government of Sierra Leone and Dura Plast and Ferro Fabric Sierra Leone Limited has also been signed at the tune of twenty-four million dollars ( $24 million)
Explaining the economic viability of the just ratified agreements to the country, the Minister of Trade and Industry, Dr. Hinga Sandy informed honorable members that the two agreements will have a far reaching impact on the construction of production industries which will include the local production of cements and the production of iron ore.
He reaffirmed that the agreements will definitely help the speedily growth of the country’s economy through industry developments.
Minister Dr Hinga Sandy assured Members of Parliament that his Ministry will ensure that the two agreements will be implemented in the best interest of the people of Sierra Leone. He added that the Ministry of Trade has already put in place an implementation plan as well as setting up a monitoring and evaluation unit for all the agreements they Ministry will be going into with the private sector.
He also reassured the House of Parliament that under the leadership of the Ministry of Trade, his Ministry has been going through all the terms and conditions of agreements that have passed through the House of Parliament.
Due to the astute leadership of the Ministry of Trade and Industry in terms of going in to agreements with private sector, the Minister further informed that the country now has the lowest selling flour in the whole of West Africa because he said the Government signed an agreement with two companies that are producing flours which are the Sierra Leone flour mill that was shut down for over twenty years and the Sonoco flour industry which currently embarks on building its facility at Willington for the massive production, processing and implementing a bakery facility.
“Mr. Speaker Honorable Members, these two agreements are all part of the New Direction agenda to promote industry in this country. As you all aware that cement has taken central stage as one of the highest commodities in demand. This has resulted to shortages recently due to foreign exchange constraint. As a way to alleviate this problem, the Ministry of Trade and Industry engaged MACCEM Industry Sierra Leone Limited to extend their operations in the manufacturing of cements aiming at the market penetration prize that will not only ensure availability and affordability of cements, but also stabilize the prize of cements”, he assured.
He reiterated that the agreement for the manufacturing of cements are in anticipation of ten billion dollars in two phases. The first phase will involve the establishment of a loose block facility processing plant for the capacity of two hundred thousand metric tons of cements per annum that will commence with the importation of raw materials. He also intimated that the second phase will involve the setting up of a primary cement processing plant in the Western Area with an installed production capacity of two hundred and fifty thousand metric tons of cements.
He said the agreements will not just be limited to producing cements for work on demand, but also aiming at expanding on the exportation of locally produced cements across the sub-region. He emphasized that the agreement will also help cut down on the country’s importation of cements, promote human capacity as well as technology transfer trainings to Sierra Leoneans. He added that the expected financial dividends will equally maximize through providing social security for the people of Sierra Leone.
He noted that Dura Plast and Ferro Fabric Sierra Leone Limited also intend to establish an industry that aims at recycling both plastics and scrap metals, and it will integrate it operations with steal manufacturing with an installed annual production capacity of one hundred and fifty thousand metric tons.
He added that the plastic ware industry is expected to be completed and operationalized in 2022 with an estimated investment cost of twenty-four million dollars (24 million dollars). He concluded that the ratified agreement will also provide two thousand five hundred direct and indirect jobs and complete value training for the youthful population on the use of technological equipment that will be used in the various manufacturing sectors.
In his complimentary statement towards the ratified agreements, the Leader of the Coalition for Change Party (C4C) Saa Emerson Lamina observed that both agreements will drastically help to cut down the huge unemployment especially among youths in the country. He added that the agreement on the iron ore and the cement industries will definitely bring to an end, the over five decades monopoly of the only locally produced cement industry Leocem.
“Mr. Speaker Honorable Members, I see ten million dollars to be invested in two phases and you will agree with me that SL Mining only accounted for three million dollars to this country. I see ten million dollars to be invested for Sierra Leoneans and what also come from this agreements is the production of three hundred metric tons as a start and a transfer of technology to Sierra Leoneans. This is total local content policy coming onboard”, he confessed.
In his closing statement, the Speaker of Parliament Hon. Dr. Chernor Abass Bundu re-echoed the benefit of the agreement to the oversight committee and the general public of Sierra Leone. He added that the agreements also provided under article seven for the industry companies to be subjected to following restrictions which are; to be restricted in terms of limiting export of products to not more than 40% of its total production in any given period.
Dr. Bundu called for a keen attention of the Minister of Trade and Industry to the restriction provided under article seven of the agreement, He added that the aforesaid article or restriction is in the best interest of the country especially in the event of scarcity when the manufacturing company might be tempted to export its products which is restricted to not more than 40%.