The Cement Manufacturing Development Committee (CMDC) and manufacturers have reached an agreement for the full implementation of the Legislative Instrument (LI2491) requiring manufacturers to disclose their ex-factory prices to the committee at the beginning of every month.
The LI, known as the Ghana Standards Authority (Pricing of Cement) Regulation 2024, which seeks to guide the pricing of cement in the country, came into force on September 4, this year.
The Chairman of CMDC, Professor Alex Dodoo, told the Daily Graphic yesterday that with the implementation of the regulation, consumers should expect stable cement pricing from now.
He said the committee, which had representatives from the manufacturers, met on Monday, October 21, this year to discuss the details of the LI, during which the manufacturers pledged their support for the enforcement of the regulation.
“As it stands now, all stakeholders are on the same page concerning this regulation and the manufacturers have been very clear with the committee to enforce the regulation strictly and that is what we will be doing,” he said.
Enforcement
Prof. Dodoo, who is also the Director-General of the Ghana Standards Authority (GSA), said the acceptance of the new pricing guidelines by the manufacturers and the strict enforcement of the regulations in spite of the initial pushback, would help stabilise prices of the product and check arbitrary price adjustments by some manufacturers.
He said with the regulation in place, the cement production industry in the country had reached a milestone that would promote transparency and fairness in the market.
That development, he said, was expected to impact the construction industry, where cement prices had fluctuated significantly over the years, affecting property developers.
“Consumers will now have transparency in the way cement prices are disclosed,” Prof. Dodoo said.
Development
The CMDC Chairman expressed CMDC’s gratitude to the Minister of Trade and Industry, K. T. Hammond, for establishing a comprehensive regulatory framework within nine months.
He said the framework would ensure quality and pricing checks, and provide a level playing field for industry players.
“With the regulatory framework in place, Ghana’s cement industry is poised for growth and development, and the collaboration between the CDMC and industry players will ensure a smooth implementation process,” Prof. Dodoo stated.
Background
The initial attempt to lay the LI by the minister in Parliament was met with opposition from cement manufacturers and a section of the public.
The Minority in Parliament also opposed the proposed Legislative Instrument but later agreed that it should be laid after a review.
The initial draft LI included a provision requiring manufacturers to obtain government approval before setting prices, but that provision has been removed.
However, Mr Hammond told the Daily Graphic in an interview that the enforcement of the LI would lead to a reduction in cement prices across the country.
“I have consistently been arguing that we are not being treated fairly by the cement producing companies. I have gone through a lot of literature. There is a certain amount of unfairness in the pricing of cement across the country and I am prepared to make sure that there is some sanity,” the Trade and Industry Minister said.
Source: BusinessGhana
