The CEO of the Chamber of Cement Manufacturers issues a warning, stating that lower output will result from approval of a planned Legislative Instrument (LI) to regulate cement prices.
“There is market distortion if you force a producer to sell at that price and it’s not profitable,” stated Dr. George Dawson-Amoah.
“He/she would not produce, and if they don’t produce, then there will be a shortage. Is Ghana ready for a cement shortage?”
In an interview with George Wiafe on PM Express Business, he emphasized that investors would be discouraged if cement industry prices were forced unprofitably low due to the sector’s capital-intensive nature.
In an election year, Dr. Dawson-Amoah charged that the government had put political expediency ahead of sound economic reasoning.
Inquiring as to why the conversation began during an election year rather than in 2023, he again questioned the timing.
Following months of debates about the proposed LI, the Chamber and the sector ministry have made these statements.
Because the device doesn’t address the underlying reasons for the rise in cement prices, the makers are worried that it will negatively impact their company.
He spoke:
“If you’re going to force me to sell at a price that is not profitable, investment will be curtailed. Don’t forget, we have workers and other costs, so the workers will be affected,”
“The thought that went into regulating cement prices is more politically motivated than economic. But we need to ask if Ghana is ready for it. Economically, Ghana is not ready for it,”
“The proposed LI undermines fairness, transparency, and inclusive decision-making and fails to address the complex issues driving cement price escalation,” a statement from the Chamber last week read.
The LI has been placed in Parliament by the Trade Minister, who is now waiting for it to develop and become legislation.
The CEO of the Chamber expressed disappointment in this decision, claiming that his members and other stakeholders were not contacted prior to the LI being placed.
The Director General of the Ghana Standards Board, Prof. Alex Dodoo, stated that it is imperative that the industry be controlled.
Our sector has never been subject to regulation. Players that have been making decisions for Ghanaians start to show a different side when you start to control it, he claimed.
He rejected the assertions that the instruction was made with political intent.
Read Also: Speaker Calls On Trade Minister To Revoke Cement Price Regulation
