The chairman of a committee tasked by Ghana’s Trade Minister to address rising cement prices, Prof. Alex Dodoo, has accused cement manufacturers of withholding critical information needed to resolve the issue effectively.
Prof. Alex Dodoo, who is the Director General of the Ghana Standards Authority, revealed that in five separate meetings, manufacturers failed to disclose their cost structures and other factors influencing product pricing.
The committee, convened to formulate plans to tackle soaring cement prices, aimed to enforce transparency within the industry. Prof. Dodoo emphasized the importance of transparency in cement pricing, stating that consumers should have access to information about extraction costs at factory gates.
“The question is, are we being charged too much for cement as it comes to the factory? At the committee meetings, the manufacturers were asked to declare their extraction prices, but this crucial information was not forthcoming,” Prof. Dodoo explained to JoyNews.
He highlighted that the proposed legislative instrument seeks to promote openness and fairness in cement pricing, ensuring that Ghanaian consumers receive a fair deal and manufacturers obtain a reasonable return on investment.
Responding to concerns, Dr. Dawson Amoah, CEO of the Cement Manufacturers Association, acknowledged the challenges but stressed the necessity of dialogue to stabilize prices rather than imposing price regulations.
“It is not a decision taken lightly when manufacturers increase prices. There is reluctance because they understand the impact on consumers,” Dr. Amoah stated, advocating for collaborative efforts to maintain price stability.
Meanwhile, amidst efforts to regulate prices, the Ghana Standards Authority has intensified measures to uphold cement quality standards. Prof. Dodoo announced plans to shut down cement companies producing substandard products to safeguard quality and maintain consumer confidence.
“We have identified some players resorting to compromising on quality to compete. We closed down three such companies and intend to shut more in the coming days. Quality is non-negotiable,” Prof. Dodoo affirmed.
Currently, Ghana hosts 14 licensed cement factories, each playing a crucial role in the country’s construction sector. The ongoing discussions in Parliament aim to strike a balance between regulatory measures and market dynamics, ensuring that regulations support fair competition while upholding Ghana’s reputation as a promoter of free markets.
The dialogue between stakeholders continues as Ghana seeks effective strategies to mitigate the impact of rising cement prices on consumers while fostering sustainable growth in the construction industry.