Trade Minister justifies move to regulate cement pricing across the country

Minister of Trade and Industry, Kobina Tahir Hammond, has defended his proposed Legislative Instrument (L.I.) which seeks to regulate prices of cement sold on the market.

The L.I has been strongly opposed by cement manufacturers due to what they say is a lack of adequate consultation on the part of the government. But the sector minister insists that cement manufacturers have been duly consulted on the development.

Addressing journalists outside parliament on Wednesday, June 26, 2024, K.T. Hammond asserted that the L.I has become necessary to curtail arbitrary pricing and potential exploitation by cement manufacturers.

“At a point in time, we were not producing so much cement in the country. Now we have an installed capacity of over 11 million tons in the country. Our demand is nothing like 11 million, so it must be a very profitable enterprise.

“But I think it behooves those in responsible positions in authority to ensure that the good people of Ghana are not fleeced. I am not comfortable, I don't believe that we're getting good prices for all that it's worth,” he explained.

The Trade Minister argued that the prices of cement in the country were not justified and expressed frustration over what he perceived as the industry's reluctance to address pricing issues voluntarily.

“Now I take the view that it's about time that the country was better served by those who are selling this product to us.

“You have a kind of arbitrariness in the pricing of cement. It's been so haphazard, I strongly believe that there must be some sanity in the system,” K.T. Hammond emphasized.

Meanwhile, the Chamber of Cement Manufacturers have vehemently opposed the decision to push through the L.I in parliament, citing a lack of consultation from the government.

The proposed L.I, if passed by the House, will mark a significant step to regulate pricing in a vital sector of the economy, which is the construction sector.

The government insists that the move is aimed at emphasizing fairness and consumer protection that serves the best interest of Ghanaians.



MA/NOQ