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The Quality and Standards Authority of Ethiopia (QSAE)
seized 120,000qts of cement imported by A&G Global
Trading due to its substandard quality.
Unannounced inspection of the imported cement
stockpiled at the company’s Kaliti warehouse
triggered the seizure, according to sources from the
Ethiopian Customs Authority basing the decision on
the sample test result.
The company owned by an Ethiopian and two foreign
nationals has been importing cement since 2006 after
the introduction of the Franco Valuta system
by the government to ease the pressure of cement
shortages in the country.
Companies with access of foreign accounts that can
obtain hard foreign currency and circumvent the
process through the National Bank of Ethiopia (NBE)
have been allowed to import cement through a
directive. Ten companies were subsequently licensed
by the Ministry of Trade and Industry (MoTI) to
import the commodity facing shortages domestically.
Companies like A&G started to import Zenbaba and
Pyramid brand cement from Egypt and other
trademarked products from Pakistan and India in the
past year.
“From the start, tips that imported cement of poor
quality reached our office from various sources,”
Almaz Kahsai, inspection and regulatory affairs
director at QSAE, told Fortune. “Inspection
revealed that around 40tn of cement was well below
standards.”
Detection has not always insured the product would
be prevented from reaching markets though.
“In the past, cement that was meant to be taken off
the market has reappeared after it was mixed with
other quality cement,” the director disclosed. “We
recently impounded another 80tn of substandard
cement after the mixing process and foiled two
attempts of importing substandard cement by the same
company in September alone.”
According to information at the Customs Authority,
the three cement factories in the country are far
from meeting the growing domestic demand for cement.
The resulting government directive to allow imports
resulted in 500,000tn of cement from overseas.
Cement that does not meet standards would widen the
risk of building collapse and exact huge financial
and human tolls according to construction sector
experts.
“Tall commercial buildings and bridges in particular
would have devastating consequences in terms of
human welfare and property destruction,” an engineer
expressed concern. “Using substandard cement is
unethical and buildings should be inspected
regularly to insure none has slipped through the
cracks.”
According to Teferi Asres, an attorney of A&G, the
cement the company imported is much cheaper than the
prices other companies have managed to acquire.
“It is a shear attempt to tarnish our reputation out
of jealously and unfair competition,” Teferi told
Fortune.
However QSAE confirmed that the necessary legal
measures would be taken against A&G and dispatched
an official letter to the Ethiopian Customs
Authority with this notification.
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