Manufacturers, Trade Minister tussle over proposed cement price regulation

The Chamber of Cement Manufacturers (COCMAG) and Trade and Industry Minister Kobina Tahir (K.T.) Hammond are at odds over a proposed Legislative Instrument (LI) to regulate cement prices in Ghana.
The manufacturers have expressed concern about this proposal, which aims to bring “uniformity and stability in cement prices nationwide.”

COCMAG’s concerns
Dr. George Dawson-Ahmoah, Chief Executive Officer of COCMAG, voiced the industry’s concerns in a petition to Parliament.
He highlighted that the proposal was made without prior consultation with key stakeholders, including cement manufacturers.
Dr. Dawson-Ahmoah argued that this approach undermines fairness, transparency, and inclusive decision-making, which are crucial for effective governance and regulation of the industry.
He further explained that the rising cement prices are driven by the rapid and consistent depreciation of the Ghanaian cedi against the US dollar, among other complex factors.
Addressing these challenges, he said, requires a comprehensive understanding and collaborative effort from all relevant parties, including the Ministry of Trade and Industry, cement manufacturers, and other stakeholders.

Minister’s stance
Minister K.T. Hammond defended his proposal, stating that it is necessary to prevent a cartel of cement manufacturers from exploiting the public.
He emphasized that cement prices have been consistently escalating and need regulation to protect consumers.
Hammond noted that Ghana’s installed cement production capacity is over 11 million tons, far exceeding the country’s demand, suggesting that the industry is highly profitable.

Parliamentary response
Attempts to present the LI in Parliament on June 26 were blocked by National Democratic Congress (NDC) Members of Parliament, who insisted on discussing the proposal first.
Speaking to journalists, Hammond reiterated the need for the LI, arguing that cement pricing in the country is arbitrary and requires regulatory intervention.

COCMAG’s appeal
COCMAG has urged Parliament to reject the proposed LI and direct the Minister of Trade and Industry to engage with cement manufacturers and other stakeholders to address the underlying causes of price escalation.
The Chamber believes that a collaborative approach will develop effective and sustainable solutions that consider the interests of all parties involved.
“We trust that you will consider our petition to ensure that the voices of the primary stakeholders in the cement industry are heard and respected,” the CEO, also the Anglican Bishop of Nkoranza, stated in the petition.
Despite manufacturers’ claims of no consultation, Hammond insists they have been consulted.
The Trade Minister remains firm on the necessity of the LI to ensure fair pricing and prevent exploitation in the cement industry.

Future steps
As the debate continues, the resolution of this issue will be crucial in determining the future regulatory framework for the cement industry in Ghana.
Both sides are committed to working towards a stable and prosperous industry, but the path to achieving this goal remains contentious.