The chief executive of the Cement Manufacturers Association has warned that the proposed Legislative Instrument (LI) to control cement prices, if approved, will lead to a fall in production.
“If forcing producers to sell at that price is not profitable, it will distort the market,” Dr George Dawson Amoah said.
“They will not produce and if they do not produce there will be a shortage. Is Ghana prepared for a cement shortage?”
Speaking to PM Express Business’ George Waiafe, he stressed that the capital-intensive nature of the cement sector meant investors would shy away if prices were kept too low to be profitable.
“If we are forced to sell at prices that are not profitable, it will discourage investment. Remember, we have labour and other costs, so labour is the one who is affected,” he explained.
Dr Dawson Amoah accused the government of prioritising political expediency over economic rationality in an election year.
“The idea of ββregulating cement prices is more politically motivated than economically. But you have to ask whether Ghana is ready for it. Economically, Ghana is not ready,” he said.
He also questioned the timing, asking why discussions began in an election year rather than 2023.
These comments come after months of disagreement between the chamber and industry ministries over the proposed LI.
Manufacturers have expressed concern that the move will not address the underlying causes of rising cement prices and will adversely affect their business.
“The proposed LI undermines fairness, transparency and inclusive decision-making and does not address the complex issues that are causing high cement prices,” the chamber said in a statement last week.
The Minister for Trade has tabled the LI in Parliament and is waiting for it to mature and be passed into law.
The move has disappointed the chamber’s CEO, who said members and other stakeholders were not consulted before the LI was enacted.
Meanwhile, Executive Director of the Ghana Standards Commission, Alex Doduo, argued that it was time to regulate the sector.
“The sports industry in Ghana has never been regulated before. When you start regulating it, you start to see a different look from players who have been the decision-makers for Ghanaians,” he said.
He disagreed with the allegation that the directive was politically motivated.
Disclaimer: The views, comments, opinions, contributions and statements made by readers and contributors on this platform do not necessarily reflect the views or policies of Multimedia Group Limited.