Accra, Ghana – Ghana’s Minister for Trade and Industry, Alhaji Kwabena Tahir Hammond, has expressed confidence that cement prices will begin to decrease following the implementation of the Ghana Standards Authority (Cement Pricing) Regulations, 2024.
The Legislative Instrument (LI), which recently matured in Parliament after the mandatory 21 sitting days, is expected to bring transparency to cement pricing in the country.
Addressing the media at the sidelines of an emergency parliamentary session on Wednesday, September 4, 2024, Minister Hammond emphasized that the measures put in place by his ministry, coupled with a robust regulatory framework, will provide much-needed relief to consumers in the construction sector.
“I am very hopeful that the nation will see the price of cement either coming down or at least stabilizing for once. I am confident about that,” the Minister stated.
Contrary to concerns that the government aims to dictate cement prices, Minister Hammond clarified that the regulation is intended to ensure that cement pricing accurately reflects production costs. The LI requires cement producers to justify their prices with proper documentation, which would enable the government to assess whether prices are fair.
“Factors of production, maybe at the end of the day, cement should be about 20 Cedis, 40 Cedis, or 50 Cedis. We don’t know the top-ups, so we are asking for transparency. What will happen if we ask for your document and you satisfy us that these are the reasons why you are charging 100 or 200 Cedis and we say we think it is within range? What is the problem with that?” he quizzed.
Despite resistance from some industry players, whom the Minister referred to as a “cabal,” he remains resolute in his mission to ensure transparency in the cement industry. He revealed that certain groups have written letters to his office in opposition to the regulation but insisted that these efforts would not deter him from investigating the real cost of cement production and its fair market price.
Minister Hammond concluded by stressing that the government’s primary goal is to protect consumers and create a fair market environment in the cement industry, promising that the new regulations will bring positive change to the sector.
Source: Clement Akoloh||parliamentnews360.com
