K.T. Hammond
The Minister of Trade and Industry, K.T. Hammond, has finally laid in Parliament the Ghana Standards Authority (Pricing of Cement) Regulations after initial setback.
The legislative instrument seeks to regulate the prices of cement in the country amid increasing concerns over escalating cement prices, which have risen to an average of GH¢105 per bag.
The government, having taken note of the concerns, decided to submit a legislation to regulate cement prices in accordance with its commitment to protecting the state’s interests, after several months to get cement manufacturers to reduce their prices.
However, the legislation’s introduction in Parliament took a political turn when the National Democratic Congress (NDC) lawmakers joined producers of cement in opposing it.
The Minister finally presented the Ghana Standards Authority (Pricing of Cement) Regulations 2024 after passing the pre-laying process.
It will eventually become law after a 21-sitting day of Parliament.
Mr. Hammond, earlier explained that the new legislation would help the country to combat arbitrariness in the pricing of cement.
The Minister highlighted the need for the regulation, asserting that a moral persuasion to cement manufacturers to stop arbitrary price increases and publish their retail prices failed.
“You would also realize that for a long time, you never see cement prices de-escalating. It’s always escalating. It’s always going up through the ceiling, through the roof, and towards the skies.
“Somehow, something has to be done about this. 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 might 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,” he stated.
The Minister indicated that he did not believe that Ghanaians are getting good prices for “all that it’s worth.”
“I think there’s something fundamentally wrong with the pricing of cement in the country. It was about the same issue that we tackled when we were at the Ministry of Energy, [is done to the cement sector,” Mr. Hammond stated.
He indicated that the new Legislative Instrument (L.I), when it becomes a law, would introduce a price stabilization fund that will regulate cement pricing in the country.
“Put something together, so we have a situation where in Bolga, a bag of cement sells the same as it sells in Accra. In Kumasi, it sells at the same as it sells at Sefwi Wiawso. We’ll discuss all these matters.
“And then, of course, let’s also ensure that there is some kind of sense. It shouldn’t be so arbitrary. I wouldn’t allow a situation where you don’t have an oligarchy operating when there wasn’t a monopoly,” he said.
Already, there exists a legislative instrument (LI 2480) which sets up the Cement Manufacturing Development Committee that ensures that new cement manufacturers in the country become licensed before operation.
By Ernest Kofi Adu, Parliament House