The Minister for Trade and Industry, Kobina Tahir Hammond, has revealed that a new Legislative Instrument (L.I.) aimed at regulating cement pricing will ensure fairness in the cement market, benefiting both the industry and consumers across Ghana.
Speaking at a press conference on Wednesday, September 4, 2024, Mr Hammond announced that the L.I., which was previously delayed, has now fully matured. The Adansi-Asokwa MP noted that the LI will introduce key measures to address concerns over both the quality and pricing of cement in the country.
The Trade Minister noted the importance of educating the public on the various types of cement available and their specific uses. He expressed concern over the lack of awareness among consumers regarding the differences between cement grades such as 32.5R and 42.5R.
“These two grades have distinct chemical compositions and are intended for different purposes. Using the wrong type of cement, like 32.5R—which is meant for plastering—for foundational work can compromise building safety,” Mr Hammond stated.
To tackle this issue, the Ghana Standards Authority has been tasked with differentiating cement packaging to help consumers easily identify the right product for their needs.
Mr. Hammond also addressed concerns over unfair pricing practices by certain cement manufacturers. He criticized a recent price hike by one company, which increased prices by GHS 8, calling the move “blatant” and unfair to consumers.
Under the new L.I., a committee will be established to oversee transparency in cement pricing. This committee will require manufacturers to justify price changes by presenting detailed reports on production costs, including factors such as raw materials, foreign exchange rates, taxation, and electricity costs.
“We acknowledge the complexities involved in production, but we want transparency. This committee will ensure that cement prices are fair and reflect the true cost of production,” the Minister explained.
Mr Hammond also hinted that the committee’s findings could result in price reductions or stabilization in the near future. He urged cement manufacturers to comply with the new regulations, assuring the public that the government remains committed to ensuring that the cement industry operates fairly and in the best interest of the nation.
By: Ekow Annan/newsalertgh.com
