The decision by the New Patriotic Party (NPP) government to introduce ‘control pricing’ in the area of cement prices, is meeting with very stiff opposition.
The government of Ghana currently does not manufacture even a bag of cement, but is seeking to pass a law that allows it to set the price of cement.
In the meantime it is raking in all the taxes on imports that go into the manufacturing of the product. At the same time it has been unable to rein-in the rapidly depreciating Cedi, one of the factors blamed for shooting the price of products, including cement, through the roof.
Two groups very interested in the issue, the Importers and Exporters Association of Ghana (IEAG) and the Chamber of Cement Manufacturers (COCMAG) have kicked against the proposed biull to regulate cement prices and called on parliament to scrap the Bill.
In a statement, the Importers and Exporters Association of Ghana (IEAG) called on Parliament to reject a proposed bill from the Minister of Trade to be clothed with power to regulate the prices of cement on the Ghanaian market.
The said LI is to ensure uniformity and stability in cement prices nationwide.
In a statement signed by Mr. Samson Asaki Awingobit, the Executive Secretary of IEAG, it was indicated that the association, as advocates for a holistic trading environment both in the import and export sectors, finds the proposed Legislative Instrument by Mr. K.T. Hammond, the Minister of Trade threatening to the survival of cement manufacturing businesses in the country and also a cheap approach to short-changing the business sector.
“The IEAG believes that the proposed LI, if accepted and passed, will undermine fairness, transparency, and inclusive decision-making in the sector. Whereas it would also fail to address the complex issues driving cement price escalation, primarily the rapid depreciation of the Ghanaian cedi against the US dollar,” it stated.
The association added that Parliament must also note that the Trade Minister’s approach lacked collective engagement from stakeholders such as cement manufacturers and even the IEAG, whose inputs matter in such cases.
“It is quite worrying for the government to make such a unilateral decision, which will not only hurt the cement sector but also affect the cost of production that will be passed on to the consuming public.”
It therefore urged Parliament to judiciously reject such an LI and direct the sector minister to engage stakeholders to solicit collective input on how to address the price escalation of cement and the cedi depreciation, which has been partly blamed on the cement manufacturing sector.
Meanwhile the Chamber of Cement Manufacturers (COCMAG) has expressed concern about a recent proposal of a Legislative Instrument (LI) in Parliament to regulate cement prices.
The Minister of Trade and Industry, Mr Kobina Tahir Hammond had made the proposal to “ensure uniformity and stability in cement prices nationwide.”
However, Dr George Dawson-Ahmoah, the Chief Executive Office of COCMAG, who voiced the industry’s concerns in a petition to Parliament, expressed worry that “the proposal was made without any prior consultation with the key stakeholders in the cement industry, particularly the cement manufacturers.”
Such an approach, he said, “undermines the principles of fairness, transparency, and inclusive decision-making, which are vital for the effective governance and regulation of the industry.”
He said the Chamber believed that the issues leading to the escalation of cement prices were complex and multifaceted, primarily driven by the rapid and consistent depreciation of the Ghanaian cedi against the US dollar.
Addressing those challenges, Dr Dawson-Ahmoah noted, required a comprehensive understanding and collaborative effort from all relevant parties, including the Ministry of Trade and Industry, cement manufacturers, and other stakeholders.
“The unilateral attempt by the Hon. Minister to introduce this proposal to Parliament without engaging with us is not only unfair but also detrimental to the spirit of partnership and mutual respect that should guide our collective efforts to stabilize and grow the industry,” the CEO of COCMAG stated.
In light of the concerns, the COCMAG urged Parliament to decline the proposed Legislative Instrument.
The Chamber further urged Parliament to direct the Minister of Trade and Industry to engage with the Chamber of Cement Manufacturers and other relevant stakeholders to discuss and address the underlying causes of the price escalation.
The CEO said such a collaborative approach would enable the Chamber to develop effective and sustainable solutions that considered the interests of all parties involved.
“We trust that you will consider our petition so as 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, said in the petition to Parliament.
“We remain committed to working collaboratively with the government to achieve a stable and prosperous cement industry in Ghana,” it added.
