The Ghana Standards Authority (GSA) is set to shut down certain cement manufacturing companies producing low-quality products.
This initiative aims to tackle substandard cement production nationwide and safeguard consumers, aligning with the Ghana Standards Authority Act 2022.
Presently, only 14 licensed cement factories are operating within the country.
However, in an interview with JoyNews, the Director General of the Authority, Prof. Alex Dodoo, stated that some factories are utilizing poor-quality materials in their production processes.
He emphasized that this situation is unacceptable.
“The Standard Authority has done a research and we have noticed that some particular players believe that the only way to compete is to reduce the quality of cement.
“We have closed up three of them and I can assure you that in the coming days a lot more will be closed down because if there is one thing we will not compromise on, that is quality,” he stressed.
Prof. Dodoo, who also chairs the Cement Manufacturing Development Committee responsible for creating a framework to regulate product pricing, explained that the newly proposed legislation aims to ensure industry transparency.
“Indeed, all players have agreed and we know the cost build up; clinker is key, energy is key and exchange rate is key.
“I believe that the whole purpose of the legislation is to promote openness and transparency in cement prices and cement manufacturers have indicated that there are some taxes that must be reviewed.”
The Chief Executive Officer of the Cement Manufacturers Association, Dr. Dawson Amoah, stated that the Association’s members are prepared for a dialogue.
“I am a consumer myself and it is not out of fun that manufactures get up and increase prices. Anytime there is price increase, it is really with reluctance because they feel the effect.
“But they don’t have any other option but to do so.. so rather, I will reiterate that whatever efforts the minister wants to put in regulating the prices, be put on hold and I will rather suggest that there should be a dialogue to see how we can stabilize cement prices.”