Minister for Roads and Highways, Kwame Governs Agbodza has announced that the government is set to launch a large-scale road infrastructure project, warning cement producers to align prices with economic realities.

Speaking to the media in Parliament ahead of the mid-year budget review presentation on Thursday, the Minister stressed that the upcoming projects would require large quantities of cement and that price fairness would be a key factor in supplier selection.

“We are about to unveil a massive road infrastructure programme which will consume a lot of cement,” he said. “We shall be ready to determine that cement used for government projects should be sourced from sources that are cheaper on the market. It’s as simple as that.”

Mr Agbodza expressed concern over the high cost of cement, which he said directly affects the cost of public infrastructure and, ultimately, taxpayers. “The price of cement is directly linked to the cost of government projects and indirectly, it is the Ghanaian taxpayer who will pay for those projects,” he said.

He urged cement dealers to reduce prices in line with gains made from the appreciation of the cedi and other economic improvements. “Cement producers who are refusing to pass on the gains made in the economy in terms of stability of the currency to consumers will not be favoured,” he warned. “This rent-seeking must stop.”

He noted that the government is not introducing price controls but is demanding fair pricing. “I’m not trying to control prices, but I believe that everybody, including yourselves, knows that even trotro drivers and fuel traders have reduced their prices. What justification do we have for cement dealers not to do the same?” he asked journalists.

He said a fair price for cement should be around GH¢95 per bag, rather than the current GH¢120 in some markets. “From the calculation that I’ve seen, I will not be surprised or it should not be out of place for cement to be sold at GH¢95. Of course, prices will differ slightly due to transport costs, but GH¢120 is just not fair to Ghanaians.”

Responding to claims from cement producers that imported clinker drives up costs, the Minister countered that the stronger cedi has lowered import costs. “They said when the dollar was up, that’s why prices rose. Now the dollar is down. What’s the excuse now?” he questioned.