Consumer advocacy group, Cuts International, has warned against the government’s proposed Legislative Instrument (L.I.) that seeks to regulate prices of cement sold on the market.
West African Regional Director, Appiah Kusi Adomako, believes that the move could deter potential investors from participating in the key sector of the economy, which is construction.
“In this democratic dispensation, it would be very detrimental for the government to regulate prices. Doing so would send signals to potential investors in other industries. Anyone looking to invest in the market would be concerned that if the government regulates prices, they might not want to operate in the country. The firefighting approach is not the best,” Appiah Kusi is quoted as saying by citinewsroom.com.
“Let us consider the key factors. We know that the cedi-dollar exchange rate is a factor. The cost of electricity is also a factor. If the Public Utilities Regulatory Commission (PURC) reviews tariffs every quarter and production prices are increasing, we need to find ways to stabilize the cedi,” he explained.
The Cuts International Director wants the government to adopt robust policies that aim to attract investors to the cement sector.
Meanwhile, the L.I., which seeks to regulate cement pricing in Ghana, has been strongly opposed by cement manufacturers due to what they say is a lack of adequate consultation by the government.
However, the Trade Minister, Kobina Tahir Hammond, insists that cement manufacturers have been duly consulted on the development.
Addressing journalists outside parliament on Wednesday, June 26, 2024, K.T. Hammond asserted that the L.I. has become necessary to curb arbitrary pricing and potential exploitation by cement manufacturers.
He argued that the prices of cement in the country were not justified and expressed frustration over what he perceived as the industry’s reluctance to address pricing issues voluntarily.
Source: www.ghanaweb.com
