Cement prices to go up starting today amidst price control moves by government

Amid a heated debate over a proposed legislative measure by Ghana’s Trade and Industry Minister, K.T. Hammond, aimed at regulating cement prices, cement manufacturers have announced their intention to raise prices starting today, July 1, 2024.

The Cement Manufacturers Association of Ghana (CMAG) says that the increasing prices of cement can be attributed to the fall of the Cedi against the Dollar.

The Executive Secretary of the Cement Manufacturers Association of Ghana (CMAG) Rev. Dr. George Dawson-Ahmoah said they do not need a Legislative Instrument to regulate cement prices.

Rev. Dr. George Dawson-Ahmoah in an interview with RGG News further stated that they have not been consulted on the L.I. He asked the Minister to seek their views on it.

“Why is the Minister avoiding or just running away from this discussion? Previously, our position has been that these prices of cement, the increase of prices of cement, is not done in a vacuum. It is not done just because we wake up in the morning and do it,” he said.

“It is as a result of a negative trend in the economy, which is warranting such increases, and that is the issue. And like I said, what is happening now with cement prices is just because of the rapid and consistent depreciation of the cedi against the foreign currencies.

“We don’t know anything about it. And with my common knowledge in legislative instruments, don’t you involve stakeholders before it gets to Parliament? Don’t you involve stakeholders in the process?” he quizzed.

Samuel Dartey, a building engineer noted that cement prices had already risen by GH₵10.00 in May, and it is set to increase by an additional GH₵12.00 effective July 1.

According to him, he was informed by cement manufacturers a few days ago that effective July 1, the prices of cement will shoot up again.

“As of this morning, we got a text message from the cement manufacturers that effective 1st of July, they are increasing it by 12 cedis.”

Meanwhile, Trade and Industry Minister Kobina Tahir (K.T.) Hammond has justified the introduction of the controversial Legislative Instrument (L.I.) that is seeking to regulate cement prices in the country.

He says that as persons in authority, it is their duty to ensure that Ghanaians are not fleeced.

“At a point in time, we are not producing so much cement in the country. Now we have an installed capacity of over 11 million tons in the country. Our demand is nothing like 11 million, so it must be a very profitable enterprise. But I think it behoves on those in responsible positions of authority to ensure that the good people of Ghana are not fleeced. I am not comfortable, I don’t believe that we’re getting good prices for all that it’s worth,” he said.