The Ghana Real Estate Developers Association (GREDA) has expressed strong support for the Minister of Trade and Industry’s decision to introduce a Legislative Instrument (L.I) to regulate cement pricing in the country.
Mr. Steven Debrah Abloberti, Vice President of the Association, voiced this support, citing the recent surge in cement prices as a significant concern.
“Cement prices have been increasing in the past days, which is derailing the businesses of practitioners and preventing them from planning effectively,” he stated.
He explained that the instability in cement pricing disrupts project timelines, often throwing 24-month projects off schedule.
Mr. Abloberti emphasized the Association’s endorsement of the Minister’s efforts to stabilize cement prices and called for the inclusion of iron rods in the list of regulated products.
“The unstable price of iron rods is also a significant challenge affecting the industry,” he added, stressing the need for broader price stabilization measures to support the construction sector.
In a related development, the President of the Ghana National Chamber of Commerce and Industry (GNCCI), Dr Clement Osei Amoako, urged the Minister of Trade and Industry, K.T. Hammond, to reconsider the plans to control cement pricing.
Speaking on Accra-based Joy FM on Friday, June 29, 2024, Dr Amoako argued that price control is an outdated economic model unsuitable for the cement manufacturing industry.
“As a country, we have moved past the era of controlling prices.
I don’t think that is the way to go,” Dr. Amoako stated.
He questioned the logic of determining the price of commodities produced by businesses that have made substantial investments.
“Ghana operates a free-market system that allows market forces to determine prices, not the government,” he stressed.
Dr. Amoako highlighted the importance of adhering to the principles of a free-market economy, where demand and supply dictate pricing.
“We have all come to accept that we are a free-market economy, and therefore, we should allow market forces to determine prices,” he concluded.
