Wednesday, March 5, 2014

GHANA: GIPC signs €60m agreement with CIMAF for cement production

The government of Ghana has signed an agreement with the Ciments de l’Afrique (CIMAF Ghana Ltd) to construct a 60 million euro cement factory in Ghana.

According to the terms of agreement signed on Monday, March 3, 2014, the factory would be located close to the Tema Metropolitan Area.

Mrs. Mawuena Trebarh who represented the Minister of Trade, Haruna Iddrisu signed on behalf of government with Mr. Saad Sefrioui, General Director of Ciments de l'Afrique (CIMAF GHANA LIMITED) signing on behalf of his organization.

“CIMAF Ghana Limited plans to build a cement plant in the Republic of Ghana with a capacity of one million (1,000,000) tons per annum,” a letter of intent between the two institutions stated.

The agreement follows a recent meeting when President John Dramani Mahama received a delegation from the Moroccan Real Estate Group Addoha, led by Director General of the group, Saad Sefrioui.

Mr Sefrioui described the meeting with President Mahama as very good, and explained to journalists that the President showed a keen interest in the project.

Ghana has about 1.7 million housing deficit. According to Mr Sefrioui, this is something that needed all the necessary attention to overcome.

“That is why Addoha, which has an enviable track record in Africa, is determined to play a key role in addressing the problem,” he said.

The two parties therefore agreed on Monday that CIMAF will complete the building of the cement plant within 18 months. The company was charged to take account of local content and also work in accordance with domestic laws and regulations particularly those related to the protection of the environment.

Government is also expected to facilitate the acquisition of ten (10) hectares of land as well as a lease of limestone quarry.

The Ghana Investment Promotion Centre has embarked on a number of strategic moves recently to boost investment in the country whiles protecting local content.

According to Mrs. Mawuena Trebarh, the overriding goal is to create jobs and sustain economic growth.

Last year, Foreign Direct Investment (FDI) inflows to the country declined marginally by 19.53 percent to $3.946.41 million compared to almost $4,904.41 million recorded in 2012.

The Addoha Group, with a turnover of one billion euros, had been operating in 17 major cities in Morocco until two years ago when it started penetrating Africa south of the Sahara.

It has now established its presence in seven countries outside Morocco.

Mr Sefrioui said the Addoha Group was determined to make a strong impact on the economy of Ghana.

In doing that, he said, it was targeting low and middle-income groups who were in need of housing most.

And in supporting such groups to own their own houses, he said, the group would be maintaining its leadership role in real estate in Africa.

He also said the group’s presence in the production of cement would be so enormous that it would put a stop to the shortages the country sometimes faced.

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