IPS reported that between 2011 and 2012, the Côte d'Ivoire government plans to establish a scrap metal processing industry that will supply finished products to domestic and regional markets. It is unwelcome news for the country's existing scrap dealers.
According to the industry's own association, Côte d'Ivoire presently exports an estimated 100,000 tonnes of scrap metal each year, employing 226,000 people and earning around USD 24 million in taxes for the government. The finance ministry says the sector contributes 3.5% to the country's gross domestic product. The government wants to increase revenue from the sector.
Mr Michel Koné, a tax inspector at the finance ministry, said that reorganization of the industry will produce added value, create new jobs, and generate additional revenue. In preparation for the launch of its new strategy, the government has suspended exports of scrap metal putting collectors, vendors and exporters in turmoil.
Mr Mory Kamara, a 47 year old scrap dealer in Adjamé, said that the Ivorian economic capital "In August 2009, the customs authorities imposed a tax of USD 200 per tonne on the exports of scrap. Now two years later, they've decided to suspend exports. Clearly, there is a desire to discourage us from conducting our business. But we know that all of this has no point other than to ensure a monopoly for some big operator. Yet for more than a decade, no one has been interested in this sector."
Mr Kalifa Doumbia, president of the Association of Scrap Dealers of Côte d'Ivoire, said that "We don't think that the government can do it without us. Even if that was possible, the government must think about how to support scrap dealers who have invested their own resources in this business."
But Mr Koné rejects these allegations as unfounded, explaining that the tax on exports of scrap has proved ineffective and has earned very little for the government. According to him, the sector could bring in twice as much tax revenue, if it were better organized.
Mr Doumbia points out that the scrap dealers have already suffered damages due to the recent political crisis, collectively absorbing losses he estimates at around USD 18 million. He says some 10,000 tonnes of scrap are still stranded on the quays at the port in Abidjan, waiting to be exported to Europe and Asia.
Mr Brahima Fofana from the scrap dealers association said that "We need a moratorium of at least three months to clear this stock. This would allow us some relief we are going to wait for more than a year to resume businesses. Many families are going to experience real hardship during this period."
Sourced from ipsnews.net
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