Trade Minister K.T. Hammond Dismisses Plans for Cement Price Capping, Calls for Fair Pricing in Ghana

The Minister for Trade and Industry, K.T. Hammond, has clarified that the government has no intention of imposing a cap on cement prices in the near future. This assurance follows the recent implementation of a controversial Legislative Instrument (LI) on cement pricing, which took effect after the mandatory 21-day maturity period.

Addressing concerns about the new regulations, the Trade Minister emphasized that the aim is to ensure fairness and transparency in the pricing of cement across Ghana. He noted that there has been significant debate and misunderstanding regarding the government’s position on this issue, leading to the need for clarification.

K.T. Hammond stated, “I am clear beyond argument that there is a certain amount of unfairness in the pricing of cement in the country, and I am prepared to make sure that there is some sort of sanity. The document [LI] as we speak is in force.”

The Minister’s remarks come in response to widespread speculation that the government intended to set a maximum price for cement. Hammond dismissed these rumors, explaining that the government’s goal is not to dictate prices but to foster a fair and competitive market environment.

“We have a legislative instrument, and it is essentially this: the last argument was that we were going to cap the price [of cement] at which they were going to sell. We indicated that that wasn’t it,” Hammond continued. “We are going to put in place, by virtue of the LI which has come into force, a committee, and the committee is going to ask all the manufacturing companies to put before them the basis for their pricing.”

The newly enacted LI is intended to address concerns about price disparities and ensure a level playing field for all stakeholders in the cement industry. The Minister underscored that the committee’s primary function would be to engage with cement manufacturers and examine the rationale behind their pricing models. This approach aims to prevent price manipulation and maintain fairness across the market.

“The committee will have the authority to review the cost structures presented by manufacturers and ensure that prices reflect genuine costs, such as raw materials, production expenses, and logistics, rather than arbitrary markups,” Hammond added.

The new regulations have elicited mixed reactions from various industry players. Some stakeholders have expressed concerns about potential government interference in the free market, fearing that the committee’s actions could inadvertently lead to price controls. Others, however, welcome the move, seeing it as a step toward greater transparency and fairness in the sector.

A representative from one of the leading cement manufacturing companies commented, “We understand the government’s concerns about pricing fairness, but we also believe in the principles of supply and demand. We hope that the committee will allow for a balanced approach that does not undermine our ability to operate competitively.”

Meanwhile, consumer advocacy groups have praised the government’s efforts, arguing that it is necessary to protect consumers from exorbitant prices and ensure that cement remains affordable for the average Ghanaian. “The introduction of this LI is a positive step. It sends a strong message to manufacturers that they must justify their pricing, which ultimately benefits the consumer,” said a spokesperson for the Consumer Protection Agency.

With the new LI now in effect, the formation of the committee marks the next critical step in the government’s strategy to regulate cement pricing. The committee’s findings and recommendations are expected to play a significant role in shaping the future landscape of the cement market in Ghana.

Industry experts suggest that while the committee’s work may bring about greater transparency, it could also pose challenges. “There is a delicate balance to be struck here,” noted an economic analyst. “The government must ensure that its actions do not stifle competition or discourage investment in the sector. At the same time, it must protect consumers from potential exploitation.”

K.T. Hammond has reiterated his commitment to overseeing a fair and competitive market environment, where both consumers and manufacturers are protected. He assured that the government remains open to dialogue with all stakeholders to address any concerns and ensure that the new regulations serve their intended purpose.

As the committee begins its work, all eyes will be on how the LI’s implementation unfolds and its impact on cement pricing and availability in Ghana. For now, the government’s message is clear: there will be no capping of prices, but there will be increased scrutiny to ensure fairness and transparency in the market.