Stakeholders in the cement industry are gearing up to acquaint themselves with the revised ‘Cement Pricing Legislative Instrument’, formally titled the Ghana Standards Authority Pricing of Cement Regulation 2024.
This follows Trade and Industry Minister KT Hammond’s laying of the Legislative Instrument (LI) in Parliament, after representatives of cement manufacturers boycotted a stakeholder meeting on Monday, July 1, 2024.
The LI, initially met with strong opposition from cement manufacturers and the Minority in Parliament, was tabled on Tuesday following amendments aimed at addressing concerns raised during consultations. Originally proposed to curb escalating cement prices amid accusations of profiteering, the revised version now emphasises pricing transparency rather than direct regulation.
“Mr. Speaker, I don’t have any issues with this. The last time the Minister was here, colleagues on both sides (of the House) had very serious concerns, that those concerns have been sent back to the Committee and have been addressed. I am informed that they have dealt with those issues and based on that we are advised that it is no longer (harmful)”, Minority Chief Whip, Governs Kwame Agbodza, remarked during Tuesday’s parliamentary session.
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Cement prices had risen approximately GH¢10.00 in May, followed by an additional average increase of GH¢12.00 effective July 1. These hikes have significant implications, especially for government initiatives like affordable housing, where rising costs threaten affordability and project completion. Concerns persist among industry observers about the potential further impact on housing prices and construction project viability.
The Legislative Instrument will undergo a 21-day maturity period before becoming law. However, specific details of the regulation have yet to be fully disclosed, prompting calls from industry stakeholders for greater transparency regarding its provisions.
Critics argue that addressing the root causes of cement price increases—such as cedi depreciation and high import duties—should be prioritised over the regulatory measures.
The Legislative Instrument has been referred to the Subsidiary Legislation Committee for further consideration and reporting to the House.
