The CEO of the Chamber of Cement Manufacturers have warned that a proposed Legislative Instrument (LI) aimed at controlling cement prices, if approved, could severely reduce production.
Dr. George Dawson-Amoah said, “If you force a producer to sell at that price, and it’s not profitable, there’s market distortion.
“He/she would not produce, and if they don’t produce, then there will be a shortage. Is Ghana ready for a cement shortage?”
In an interview with George Wiafe on PM Express Business, he underscored the capital-intensive nature of the cement sector, suggesting that enforced price reductions could deter future investments.
“If you’re going to force me to sell at a price that is not profitable, investment will be curtailed. Don’t forget, we have workers and other costs, so the workers will be affected,” he explained.
Dr. Dawson-Amoah criticized the government, accusing it of prioritizing political expediency over economic prudence in an election year.
“The thought that went into regulating cement prices is more politically motivated than economic. But we need to ask if Ghana is ready for it. Economically, Ghana is not ready for it,” he stated.
He also questioned the timing of the proposal, wondering why it wasn’t initiated earlier, rather than during an election season.
These remarks follow prolonged disagreements between the Chamber and the sector ministry regarding the proposed LI.
Manufacturers have expressed concerns that the instrument fails to address the underlying factors driving up cement prices.
While the Trade Minister has presented the LI to Parliament for consideration, the Chamber CEO expressed disappointment over inadequate consultation with stakeholders.
In contrast, Prof. Alex Dodoo, Director General of the Ghana Standards Board, advocated for regulation in the industry.
He disputed claims that the directive was politically motivated, emphasizing the need for industry oversight.
“We have an industry that was never regulated. You begin to regulate it, and players who have been calling the shots to Ghanaians begin to present a different face,” he said.
tigpost.co
