THE
Chamber
of
Cement
Manufacturers,
Ghana
(COCMAG)
has
raised
serious
concerns
about
the
newly-proposed
Ghana
Standards
Authority’s
(Pricing
of
Cement)
Regulations,
2024
(L.I.).
The
Chamber
is
of
the
strong
conviction
that
while
the
Director-General
of
the
Ghana
Standards
Authority
(GSA),
Prof.
Alex
Dodoo,
and
some
within
Parliament
portray
the
L.I.
as
a
mechanism
to
ensure
transparency
in
the
industry,
it
is
an
attempt
at
price
control.
A
statement
issued
in
Accra
yesterday
by
the
Chamber
said
the
crux
of
the
issue
lies
in
regulations
3(4),
3(5),
and
3(6)
of
the
L.I.
These
provisions,
it
said,
empowered
a
government
committee
of
scientists
at
the
Ghana
Standards
Authority
to
reject
a
cement
producer’s
reported
price
without
explanation
or
a
chance
to
appeal.
Furthermore,
it
said
producers
were
prohibited
from
selling
cement
unless
the
committee
approves
their
price.
Non-compliance
can
lead
to
licence
suspension.
“While
price
transparency
is
a
laudable
goal,
the
proposed
regulations
raise
concerns
about
who
wields
the
price
control
power.
The
price
control
committee
(PCC)
is
composed
primarily
of
six
scientists,
led
by
Prof.
Dodoo,
a
pharmacist,”
the
statement
said.
It
said,
“While
their
expertise
in
ensuring
quality
standards
is
undoubted,
one
wonders
if
a
committee
dominated
by
scientists
possesses
the
nuanced
understanding
of
market
dynamics
critical
for
setting
a
fair
price
for
a
complex
commodity
like
cement.
Can
they
effectively
balance
production
costs,
globally-
and
locally-traded
inputs,
and
the
long-term
health
of
Ghana’s
cement
industry,
better
than
the
free
market?”
The
Chamber
bemoaned
the
lack
of
consultation
in
the
build-up
to
the
drafting
of
the
bill.
“While
some
might
suggest
a
meeting
was
planned,
the
facts
paint
a
different
picture.
Cement
companies
were
summoned
via
a
last-minute
WhatsApp
message
on
a
Sunday
evening
for
a
meeting
the
following
morning,
with
no
agenda
provided,”
it
said.
The
statement
said,
“Upon
arriving
for
the
meeting,
CEOs
were
surprised
to
find
the
media
present,
raising
concerns
about
transparency
and
potential
media
misrepresentation.
Ultimately,
the
CEOs
were
informed
that
the
minister
was
unavailable
to
meet
them.”
The
Chamber
said
despite
the
narrative
of
profiteering,
Ghanaians
needed
to
be
aware
of
the
challenges
the
cement
industry
faced.
The
cedi
depreciation
by
104
per
cent
since
2022,
the
statement
said,
has
significantly
increased
production
costs,
with
77
per
cent
of
cement
inputs
being
dollar-denominated.
Despite
the
problem
of
depreciation,
the
statement
said,
the
industry
had
stood
by
Ghanaians
in
this
difficult
period
and
only
raised
prices
by
48
per
cent
in
the
same
period,
absorbing
a
significant
portion
of
the
cost
increases.
“Without
this
absorption,
the
price
of
cement
should
have
been
$2.30/bag
(GHS
35/bag)
higher
than
it
is.
Ghanaians
deserve
to
know
that
their
cement
industry
is
one
of
the
most
competitive
in
West
Africa,
boasting
of
one
of
the
highest
numbers
of
manufacturers
among
regional
peers,”
it
said.
Ghana’s
14
individual
producers,
the
statement
said,
outnumbered
Nigeria’s
12
and
Togo’s
five.
Ghana’s
cement
prices,
it
said,
were
among
the
lowest
in
West
Africa,
although
30
per
cent
of
the
cost
build-up
is
paid
to
the
government
in
taxes,
levies,
and
service
charges.
The
minister’s
actions,
it
said,
were
unfair
and
not
in
the
best
interest
of
Ghanaians.
“While
other
sectors
have
experienced
higher
price
increases,
the
cement
industry
is
singled
out
for
control,”
it
said.
The
current
approach,
the
statement
said,
could
lead
to
reduced
production
and
shortages
if
the
government-imposed
price
did
not
cover
production
costs,
and
manufacturers
might
be
forced
to
reduce
production,
hindering
construction
projects.
The
statement
also
cited
job
losses
as
another
problem
as
reduced
production
could
lead
to
job
losses
within
the
cement
industry
and
related
sectors.
“Without
the
ability
to
determine
a
fair
market
price,
investors
are
less
likely
to
invest
in
expanding
production
capacity,
potentially
leading
to
future
shortages,”
the
statement
said.
“COCMAG
is
not
alone
in
its
opposition
to
this
L.I.
Several
professional
bodies
have
spoken
out,
including
the
Ghana
Chamber
of
Construction
Industry,
GREDA,
Importers
and
Exporters
Association
of
Ghana,
the
consumer
protection
organisation,
CUTS
International,
all
expressing
concerns
about
the
proposed
regulations’
impact
on
the
industry
and
ultimately,
Ghanaian
consumers,”
the
statement
said.
On
the
way
forward,
COCMAG
urged
the
government
to
reconsider
this
heavy-handed
approach
and
engage
in
constructive
dialogue
with
the
industry.
“Transparency
in
cost
structure,
a
focus
on
long-term
solutions
like
promoting
local
sourcing
of
raw
materials,
and
open
communication
are
key
elements
for
ensuring
a
sustainable
and
affordable
cement
supply
for
Ghana,”
it
said.